# What is Personal Contract Hire (PCH)?

> Personal Contract Hire (PCH) explained in plain English, how car leasing works, what's included, what it costs, and how flexible short-term hire compares…

Source: https://fasttrackleasing.co.uk/guides/what-is-personal-contract-hire-pch

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# What is Personal Contract Hire (PCH)?

Updated October 2026 · 4 min read

**Personal Contract Hire (PCH) is a long-term car lease: you pay a fixed monthly rental to use a brand-new car for two to four years, then hand it back. You never own the car, road tax is included, and you drive within an agreed annual mileage. Most PCH deals need a credit check to start.**

## How does PCH actually work?

PCH is a rental agreement, not a loan. You choose a car, a contract length (usually 24, 36 or 48 months), an annual mileage and an upfront "initial rental", then pay the same fixed amount every month for the term. At the end you simply hand the car back, there is no big final payment and no option to buy. Because you are only ever paying for the use of the car, not its full value, the monthly figure is often lower than owning the same model on finance.

## What's included in a PCH lease, and what isn't?

Included as standard: the vehicle, road tax (VED) for the whole term, manufacturer warranty and breakdown cover, and usually free delivery. What is *not* included: insurance (you arrange your own), fuel or charging, and routine servicing unless you add a maintenance package. If you want servicing, tyres and MOTs rolled into the monthly, most providers offer that as an optional extra, handy for budgeting, though it costs a little more.

## What does PCH cost, and what changes the price?

- [no-deposit and low-deposit hire](https://fasttrackleasing.co.uk/guides/no-deposit-car-hire-explained)
- [hire vs leasing vs PCP guide](https://fasttrackleasing.co.uk/guides/short-term-hire-vs-leasing-vs-pcp)
- [turned down for a lease](https://fasttrackleasing.co.uk/bad-credit-car-leasing)
- [credit side works](https://fasttrackleasing.co.uk/guides/does-car-leasing-affect-your-credit-score)
- [flexible short-term hire](https://fasttrackleasing.co.uk/short-term-car-rental)
- [no credit check to get a quote](https://fasttrackleasing.co.uk/no-credit-check-vehicle-hire-quotes)
- [Check my options →](https://fasttrackleasing.co.uk/apply?niche=flexible-car-leasing)
- [Flexible car leasing](https://fasttrackleasing.co.uk/hire/flexible-car-leasing)
- [Long-term hire (12–36m)](https://fasttrackleasing.co.uk/hire/long-term)
- [No & low deposit](https://fasttrackleasing.co.uk/hire/no-deposit)
- [Short-term hire vs leasing vs PCP](https://fasttrackleasing.co.uk/guides/short-term-hire-vs-leasing-vs-pcp)
- [Car lease mileage & excess charges explained](https://fasttrackleasing.co.uk/guides/car-lease-mileage-and-excess-charges)
- [Does car leasing affect your credit score?](https://fasttrackleasing.co.uk/guides/does-car-leasing-affect-your-credit-score)