Personal Contract Hire Advantages

The deposit and monthly payments are lower than with HP or PCP, so you can afford to drive a more expensive car. 

You can change to a new car every year or two, so you won’t have the worry of owning an older car that’s outside of its manufacturer’s warranty. 

Many deals also let you add on the cost of servicing, so you’ll only have one monthly payment rather than large occasional bills.

You don’t have to worry about the car losing value while you’re running it, and you won’t have the hassle of selling it on.

You’re only paying for use of the car, so it’s better value than buying outright and then losing money due to depreciation. 

Personal Contract Hire Disadvantages

You don’t own the car and you don’t have the option of buying it at the end of the agreement.

If you don’t keep up with payments, the finance company can terminate the agreement and take the car back.

You’ll be charged (around 5p to 15p) for every mile you do above the agreed annual maximum, so it’s important not to underestimate your mileage when signing up for a deal.

You'll be charged for any damage the car has suffered, so you'll want to get any repair work done before handing it back.



You can terminate the agreement early, but this will be subject to you paying a termination fee that could be large.