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What’s the difference between PCP and PCH?

Personal Contract Plan (PCP) and Personal Contract Hire (PCH) can easily be confused, however both offer very different advantages and disadvantages.


PCP is a purchase plan, customers have the option to buy the car at end of the contract. PCH is a hire plan that can offer attractive monthly payments but you do not own the car at the end of the agreement.

If you’re in the market for a new car, you might be starting to research which finance option is best for you.

You’ll need to get some key pieces of information in place before you know which type of agreement will suit you, such as what monthly payment you can afford, how much deposit you can put in up front, and how likely it is that your circumstances might change.

Personal Contract Purchase (PCP) and Personal Contract Hire (PCH) are two of the most popular types of car finance agreement. They’re not the only plans available but they are often compared with one another when car buyers are making a decision about finance.

The table below will help you to understand the differences between PCP and PCH, and to give you the first step in deciding which type of finance agreement to explore further.


PCP v PCH – comparison table

*Details correct as of November 2018. PCP and PCH are not the only options for car finance; there are other products available which may better suit your circumstances.

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