Personal Contract Hire
Personal contract hire is a form of long term rental which is perfect for those who know they will be looking to move on to another car once the agreement period is over.
What is Personal Contract Hire (PCH)?
Working in a similar way to Personal Contract Purchase (PCP), the main difference is that ownership of the vehicle would not be assumed at the end of the agreement period and instead the car would be handed back without any further obligation.
However another vehicle could then be chosen under the same scheme (subject to credit checks). This enables maximum flexibility with your choice of vehicle and the benefit of driving a brand new car every few years.
Car Finance Agreement
A simple breakdown of how your agreement works
When the Agreement Starts
The amount you want to borrow, less any advance payment is agreed.
Your application for finance is then submitted to the relevant motor finance company and, when you pass their checks, the lender will pay for the car on your behalf.
Your monthly payments are fixed during the period of the agreement.
When the Agreement Ends
You return the car to the dealership with no option to buy the car — hand back the keys with no further obligation.
Advantages of Personal Contract Hire
There are several advantages when considering a PCH plan.
Low-Risk Motoring
It’s a low-risk option, as you can drive away in a new BMW without worrying about a warranty expiring or how to sell the vehicle in the future.
Affordable Monthly Payments
Monthly payments are often more manageable and could be more favourable compared to Hire Purchase, helping you budget more effectively.
Flexible Vehicle Choices
It offers flexibility, as you can easily change the car at the end of the agreement, giving you access to a wide range of BMW models that might otherwise be out of reach.
Maintenance Options
Maintenance and servicing packages can be added, providing added peace of mind and helping to keep running costs predictable throughout the lease period.
Things to remember
When considering a BMW lease with Lookers, it’s important to choose an agreement that reflects your driving habits, particularly when it comes to annual mileage, as exceeding the agreed limit may result in additional charges. Leasing also means you won’t own the vehicle at the end of the contract, so there’s no option to purchase it outright once the term finishes. However, for many drivers, this is part of the appeal - allowing you to enjoy a new BMW with less long-term commitment and the freedom to upgrade regularly. With expert support and a wide range of models available, Lookers makes it easy to find a lease that suits your lifestyle.
Ready to get started?
Browse the latest BMW lease deals with Lookers today and find your perfect drive.
