What is leasing?

Leasing is a more generic term for contract hire or personal contact hire. Often also referred to as BCH (Business Contract Hire) or PCH (Personal Contract Hire) there is no difference between BCH & PCH other than who is leasing it, either an individual or a business.

Simply, it is a fixed term hire of a vehicle, the rental is calculated based on certain variables. 

• Annual Mileage.
• Contract Length.
• Initial Payment.
• Whether you include a full maintenance package or not. 
• And of course the vehicle itself.

Popular because it gives you the opportunity to make use of a brand new vehicle for a fixed term at a fixed monthly cost. 

With the vehicle being owned by the funder you carry no risk on the depreciation.

Contract Hire is a fixed term agreement so you do need to remember that you cannot hand the vehicle back early without paying an early termination charge and there can be end of contract charges should you exceed your agreed mileage or return damaged beyond "fair wear & tear".

For more information on Contract Hire and other products to see which one is most suitable Guide To Finance Products