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How leasing works
Leasing or Contract Hire (PCH is Personal Contract Hire) can be a simple
way to drive your brand new car in exchange for fixed monthly payments.
It is effectively a long term rental - simply agree the contract length,
mileage allowance, and initial payment, and the car can be delivered to
your door! You won’t own the car, and at the end of the agreement you
simply return it to the leasing company.
This is the type of lease - personal lease (PCH) is for private buyers
and prices include VAT, whereas business (BCH) prices exclude VAT and
are only available to companies.
This is the total period of your hire contract. Each month you will make
a monthly payment to lease the car, and after this time you will return
This is the average annual mileage limit for your hire contract. You
shouldn’t exceed the total mileage for the contract length otherwise it’s
likely you’ll need to pay excess mileage charges.
The initial payment is the first month’s payment which is higher than
usual and calculated as either 3, 6, or 9 times the regular monthly
amount. Similar to a deposit, it forms the up front part of the hire
contract which is usually payable shortly after delivery and is