PERSONAL CONTRACT HIRE (PCH) EXPLAINED
Lease your vehicle for a fixed period and mileage in exchange for a monthly rental.
WHAT IS PERSONAL CONTRACT HIRE (PCH)?
Personal Contract Hire (PCH) is the choice favoured by most people who would prefer to lease a car for their personal use, rather than own one.
PCH offers fixed monthly costs for the right to use your chosen car over a pre-agreed period and mileage. Our vehicles come with full manufacturer's warranty and the manufacturer's comprehensive breakdown cover.
At the end of this period you are not responsible for the disposal. You simply return the car without further cost, providing it has not exceeded the agreed mileage and the condition is reflective of its age and mileage. There is no option to own the car at the end of the contact.
HOW PERSONAL CONTRACT HIRE (PCH) WORKS
1: PAY AN ADVANCED RENTAL
Pay an initial upfront rental, the amount is dependent on the monthly rentals, usually the equivalent to 1 to 12 monthly rentals.
2: SET YOUR TERMS
Set your contract length and mileage terms to suit your needs.
PCH agreements can run from 18 to 48 months in duration.
3: PAY MONTHLY RENTALS
Pay fixed monthly rentals for the agreed contract length. The rentals include Road Fund Licence with servicing and maintenance options available for an additional cost.
4: RETURN YOUR VEHICLE
At the end of your contract you are not responsible for the disposal, you simply return the vehicle without further cost, subject to mileage terms and vehicle condition.
There is no option to own the vehicle at the end of the contact.
KEY BENEFITS:
FIXED COSTS
You pay a fixed monthly rental for the duration of the contract – subject to tax and Road Fund Licence charges.
TAILORED CONTRACT
The contract is tailored by you, to meet the duration and mileage that suits you.
MAINTENANCE OPTIONS
Your monthly rental can also include servicing, maintenance and repair, for an additional cost.
OTHER THINGS YOU SHOULD KNOW:
- All agreements include road fund licence, full manufacturer’s warranty and the manufacturer’s comprehensive breakdown cover.
- Personal Contract Hire agreements can run from 18 to 48 months in duration.
- Both excess mileage and vehicle condition charges may apply.
- Maintenance of the vehicle can be included in your monthly rental as an added option.
- There is no option to own the vehicle at the end. As with all our finance products, there are no arrangement or purchase fees.
- This type of finance contract is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships.
DOWNLOAD OUR PCH PRODUCT GUIDE
Our product guides are downloadable as a PDF via the link below.
FREQUENTLY ASKED QUESTIONS
Unlike Personal Contract Purchase (PCP) and Personal Motor Loan (PML) you do not have an option to own the vehicle at the end of the contract.
As you return the vehicle at the end of the contract, there are no depreciation or vehicle disposal worries.
Personal Contract Hire is a good option for people who would prefer to lease a vehicle for their personal use, rather than own one.
Fixed priced servicing and maintenance options are available with most contracts for an additional cost. These are charged as part of your monthly rentals.
Insurance is not included in PCH, you will need to arrange fully comprehensive insurance separately.
When applying for finance you will be required to supply certain personal information, as well as to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for further proof of your address dated within three months of the submission of your application. An acceptable proof of address includes a bank or credit card statement, utility or council tax bills, or mortgage statements.
Excess mileage charges will apply at the end of your contract where you have exceeded your agreed mileage limit. In such cases, a pence per mile charge will be applied to the number of miles you have driven above the allowance stated in your contract.
| Account Management Fees | Empty |
|---|---|
| Copy statement of account | £12.00 |
| Change of payment due date* | £25.00 |
| Change of vehicle registration plate | £30.00 |
| Collection of vehicle upon voluntary termination of agreement | £70.00 |
| Transfer of agreement fee** | £150.00 |
| Arrears Management Fees | Empty |
|---|---|
| Monthly arrears fee*** | £35.00 |
| Internal collection agent visit | £50.00 |
| External collection agent visit | £250.00 |
* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Genesis Finance reserves the right to amend these fees at any time.
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