Personal Contract Hire

Personal contract hire or personal leasing is a simple, hassle free way of getting a new car for a fixed monthly sum. In essence, this sort of car finance deal is effectively a long-term rental agreement.

Contract hire and leasing deals typically run over two or three years, with an agreed mileage limit applied to the car. You’ll stump up a deposit and then monthly repayments, although there’s no option to buy when you reach the end of the term, so there's no balloon sum to worry about.

When the terms of the lease deal are at an end, you can hand the car back to the maker or take out a new lease. You’re responsible for the upkeep of the car during the term, but servicing and maintenance will often be included as part of the package, which will help to keep costs predictable.