Buying a car can be quite a complicated process. It’s a big investment, and there are so many different ways to pay that it can be hard to decide which option is best for you.

What is Personal Contract Hire and How Could it Benefit You?

Personal contract hire is a slightly different option though, where you don’t actually have to buy the car—you work on more of a rental agreement. Depending on your circumstances, personal contract hire can offer you some big benefits over the traditional way of buying or car financing.

Here are some of the benefits that personal contract hire gives you.

Fixed Costs

One reason that people like personal contract hire is because you know how much you have to pay and when. It works simply as a rental agreement, where you make an initial payment, and then pay monthly for the duration of the contract. At the end of the contract, you simply hand the car back.

When you actually buy a car, the total amount that you spend on the car depends on the resale value of the car. If your car keeps its value, then you can recoup some of the money that you spent on it, but it’s never easy to predict what the used-car market is going to do.

With personal contract hire, you know exactly what your costs are going to be, and you can budget accordingly.

Lower Upfront Costs

When you buy a car, you do have finance options available, but in many cases, personal contract hire offers lower upfront costs. You don’t actually own the car in personal contract hire, so there are less expenditures involved, making it easier to take care of the payments.

If you don’t have the money saved up to pay the deposit on buying a car, then personal contract hire can be a good alternative. You get to use the car without having to worry about the sell-on value, and you can pay for it in manageable monthly instalments.

Good Alternative for People with Poor Credit

If you’ve got a poor credit score, then personal contract hire can offer good deals on bad credit car leasing. We all need a vehicle to get around in, but a poor credit score can make it difficult to get financing in order to buy a car outright.

Instead, you can look to personal contract hire to allow you to get the finance you need, whilst still allowing you to make affordable monthly repayments.


One of the big benefits about personal contract hire is the convenience. You simply pick your car up, drive it for the duration of your contract, and hand it back when you’re done.

You don’t have to worry about selling the car on, and you can even add maintenance packages to your agreement, so that you don’t have to worry about that, either. When you buy a car, its value is going to start depreciating from the moment you drive it, but you don’t have to worry about these kinds of issues with personal contract hire.