In the second part of our special feature, we explore personal contract hire and the pros and cons of PCP & PCH as forms of vehicle funding. Chris Mountford, CEO of All Vehicle Contracts, also summarises his thoughts on both.
Personal Contract Hire - PCH pros and Cons
- PCH gives you a fixed monthly cost for the term agreed
- You can opt to include a maintenance package as part of your Personal Contract Hire agreement
- You will usually be able to get a competitive monthly payment as AVC will have secured favourable terms with the vehicle supplier on your behalf
- If you exceed your mileage allowance or if it is in poor condition, you will be liable for charges
- Unlike PCP, there will is no option to buy the vehicle at a favourable pre-negotiated end value figure
PCP vs PCH - Summary
"Although every situation is different, PCP is a win-win situation as far as car finance is concerned.
"If your vehicle is worth more at the end of the contract than the balloon payment - in my experience, if you have stuck within your mileage estimation and looked after your car, it is much better than handing it back for the finance company to sell it on for a profit.
"In addition, you still get the fixed monthly payments that personal contract hire offers and add maintenance in to your contract if you so wish.
"PCP offers more flexibility than PCH and sometimes it can be a real no-brainer to choose this method of funding over the other.
"The number of brokers that actually advertise PCP are fairly limited, so don't be put off is anyone tries to tell you that PCP isn't worth a look - this is probably because they don't offer it as part of their lending portfolio.
"Like I said, I look at every deal on its own individual merit and at AVC we have a great variety of best price personal contract hire deals, but in my opinion, if the payments are the same and you are an individual I would usually advise you to opt for PCP every time."
Browse our website for online PCP and PCH quotations or if you would like to speak to one of our dedicated team, call 01902 353393. You can also enquire and order online from the vehicle quotation page or request a free of charge call back.
All Vehicle Contracts Ltd Published: Apr 13 2018