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Monthly payments are normally higher than if you had leased the car through PCP. However, the total amount you pay over the contract is often less than with a PCP.

But every deal is different so make sure you shop around and compare the total cost including running costs. If so, leasing a car through personal contract hire PCH might work out cheaper for you. Be careful though. While PCP can be used as a way of leasing a car, it also gives you the opportunity to buy the car and become its legal owner at the end of the leasing contract.

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PCH does not. This is in addition to your deposit and monthly payments, and will be a few hundred or thousand pounds. With PCP the total amount you repay in monthly instalments is based on an estimate of how much the car will lose in value though depreciation between the start and end of the contract. Ending a PCH early means that you might have to pay off the lease costs in full, so think very carefully before cancelling the agreement and find out exactly what these total costs would be.

For a PCH, there can be further charges, so check your agreement. They might offer to extend the length of the lease, which would lower your monthly payments, or come to some other arrangement to help you out. If you get behind with your monthly leasing payments, you might lose your car.

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