Personal Contract Hire

What is Personal Contract Hire (PCH)?

PCH is a long-term rental arrangement based on an initial annual mileage agreement. PCH allows you to drive a new vehicle of your choice, which you can change after an agreed period of time. You’ll pay an initial rental amount, known as an advanced rental followed by fixed monthly payments, but you won't have the option to own the car at the end of the agreement.

Unlike Personal Contract Purchase (PCP), PCH is similar to a long-term rental vehicle. The monthly rental amount allows you to plan and budget effectively, a hassle-free way to drive a brand-new vehicle.

Features & Benefits of Personal Contract Hire

• An advanced rental amount followed by a fixed monthly rental allowing you to budget with confidence.
• No depreciation risk. Simply hand the car back at the end of your agreement (subject to vehicle condition and mileage).
• A wide range of manufacturers and vehicle brands to choose from.
• Road tax included in most agreements.
• Options for servicing and maintenance packages, breakdown cover and tyre plans can be discussed for added peace of mind.
• You can change your car after at the end of your agreement without penalty (subject to excess mileage and damage charges). Simply take a new agreement out on your next vehicle when your current agreement comes to an end.

How does Personal Contract Hire work?

At Stellantis Financial Services, we offer PCH on new vehicles across a number of manufacturers within our brand network. We also offer contract hire on selected used cars. Before entering into a finance agreement, you’ll speak to your local Retailer about the range of finance options available.

If you decide that personal contract hire is the right option for you, you can begin the process with your chosen Retailer:

1. Agree your agreement details

First, you’ll agree with your Retailer an annual mileage allowance and also the number of monthly rental payments (minimum and maximum limits applicable). 

Excess mileage charges may apply if you exceed the agreed annual mileage allowance. You can request to increase your mileage allowance in your online account should you wish to, if we agree to this it will result in a modification of your agreement and a change to your monthly repayments. Click here to find out more about mileage changes. 

2. Pay the advanced rental payment

Next, you’ll make an advanced payment to secure your car hire agreement. This initial amount is agreed when taking out your agreement and typically equals 3 months rental, so there won’t be any surprises. You can discuss the initial rental agreement directly with your Retailer.

3. Enjoy your vehicle for the duration of your contract

Following the advanced rental payment, you’ll make your monthly rental payments and enjoy your vehicle for the duration of your contract. At the end of the contract, you’ll return the vehicle to one of our collection agents. You can then also choose a brand-new car or review other car finance options. 

If your vehicle is still in good condition, according to fair wear and tear guidelines, there’s nothing else to do. If there’s any damage outside fair wear and tear or if the mileage exceeds the agreed allowance, you’ll need to settle the charges before closing your agreement. 

What’s included in a PCH agreement with Stellantis Financial Services? 

Enjoy driving a new vehicle 

With PCH, you can enjoy your brand-new vehicle without the option to own the car outright. There’s no need to think about long-term depreciation. 

Road tax included

The road tax is included within your monthly PCH rental payments. As Stellantis Financial Services remain the registered keeper of the vehicle, we’ll pay the amount due directly to the DVLA. 

If the road tax increases during the term of your agreement, you’ll need to pay the difference. Similarly, we will credit you the difference if the cost is reduced.

What you’ll need to cover

The costs of servicing, maintenance and insurance for your vehicle are not included in the monthly rental costs of a PCH agreement but can be added as an additional cost. 

When driving a vehicle under a Personal Contract Hire agreement, it’s your responsibility to choose an approved Retailer for any maintenance work. 

In addition, you’ll be responsible for making sure that the vehicle has a valid MOT certificate. Brand new vehicles don’t require an MOT for three years from the date of registration. But if your agreement extends beyond this period, you’ll need to renew your vehicle’s paperwork yourself. 

You’ll need to set an agreed mileage allowance at the beginning of your agreement, however should you go over this allowance you may incur an additional cost to cover wear and tear. 

Personal Contract Hire for Business

We are pleased to offer Personal Contract Hire for Business users. To find out more about long-term business car rental agreements, visit your local Retailer. 

Decide whether Personal Contract Hire is right for you

This video explains how PCH works and whether it could be right for you. It covers how your agreement is set up, any options with monthly rentals and what happens at the end of the contract. Watch for a straightforward overview of leasing a vehicle with no option to buy.