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In the market for a brand new car? Car leasing might be a flexible option for you. Also known as Personal Contract Hire or PCH, leasing works in a similar way to a long-term rental.
Find out more about how car leasing works below.
It can be hard to work out whether to buy or lease your next car. That’s why we’ve pulled together the features of car leasing, so you can weigh up whether PCH is the right choice for you.
At the end of your PCH car lease, you’ll have to return the car to the provider. You’ll then need to submit a new application to start a new lease with a new car.
Keeping your car in good condition is important, as you’ll be responsible for any wear and tear that goes beyond normal use. Any bumps, scrapes and scratches could result in additional charges at the end of your lease.
It can depend on the provider. Some providers include insurance as part of your agreement, while others do not. It’s important to check the terms of your lease before you sign anything. If it’s not included, you’ll need to set it up yourself.
You can lease used cars on some lease agreements. But at Halifax we only lease brand new vehicles.
A Personal Contract Purchase (PCP) agreement allows you to purchase the car outright at the end of your agreement by paying off the balloon payment, or return it (conditions apply). The final fee to purchase the car is based on the end value of the car minus the amount you have paid off already. You may also be able to refinance the remaining amount.
A Personal Contract Hire (PCH) agreement doesn’t include the option to purchase the car. At the end of your lease, you simply return the vehicle.
Car lease agreements have limits on the mileage you can cover with your new car. If you go over your limit, you will pay an excess mileage charge. Some also limit how often and at what times you can drive. The total amount will depend on your lease terms. Check the terms of your lease before you sign anything and discuss anything you aren’t sure about with your provider.