Personal Lease Car Finance Explained

Personal leasing is a flexible and affordable way to get behind the wheel of a brand new vehicle. It’s like renting, but without the option to buy at any point during your contract. It is similar to other forms of finance available but there are some differences. Because you are renting the car, personal lease car finance agreements are for new cars. In this guide, we will go through what personal lease car finance is, how it works and other details to keep you informed. We will go through how it differs from other car loan products to help you can make an informed decision. 

What Is Personal Car Leasing?

Personal car leasing (also known as Personal Contract Hire or PCH)  is an ideal way to finance a car. It is similar to other forms of car finance. However, you don’t have the option to own the car at the end of the contract.

You get to choose from a wide range of cars, whether it’s a Mazda CX-30 or Ford Focus. You could change your car at any time during the term of your agreement, so you’re always driving in style.

Similarly, you also drive the car for a set period of time, agreed by you and the lender. You simply pay off the monthly rental fee as part of your regular household budget for usually 12–36 months. After that period ends, you simply hand the car back to the finance company. They will typically collect it for free. There may be some additional costs, depending on what state you return the car in. We will go through them below.

How Does Personal Car Leasing Work?

If you’re interested in personal leasing car finance, it’s crucial that you understand what to expect. A lease is a contractual agreement between the owner of an asset and another person or party who uses this asset over time. Leasing is a popular way for car buyers to get their dream car without breaking the bank. When leasing, you pay a monthly rental fee instead of making payments on your loan. Unlike in a traditional car finance contract. You may also have the option of paying one or more deposits. This may be in the form of paying the equivalent of six monthly payments.  


The agreement also includes mileage limits that you agree upon at the start of your contract. If you exceed this or return the car, not in a state of ‘good repair and condition’ you may be required to pay additional fees. You may even be able to choose between mileage charges. It’s best to contact your lender when considering any changes to your personal leasing car finance agreement. This is to make sure you know what you can do with your vehicle so you don’t experience any hidden fees.

Pros And Cons Of Personal Car Leasing

Personal car leasing is a popular way to get a new or used car.

You can enjoy the benefits of owning a car while keeping down the costs by using personal lease car finance.


  • You only pay for what you use (unlike with traditional financing). This makes it easier to budget and enables you to drive more expensive cars than you would otherwise be able to afford.
  • The best deals are often offered on new cars; that’s because PCH contracts are used for new cars.
  • There are no long-term commitments. Allowing you to choose a different agreement entirely at the end of your contract, should you wish.
  • PCH car loans allow you to make lower monthly payments than other car finance products. Because you won’t own the car at the end of the agreement, you are simply hiring it for a set amount of time.
  • You don’t have to worry about the depreciation of the vehicle itself.


  • You don’t keep the car at the end of the agreement, the contract also isn’t as flexible as a PCP agreement.
  • You can’t modify the car during the agreement since you never own it. However, you may ask the leasing company to make any modifications before you take it.
  • There may be additional fees at the end of your agreement. This depends on the miles you have acquired and the condition you return the car in.
  • You may need to get permission from your finance provider if you’re thinking of travelling abroad. Make sure to get in contact with your finance provider.

Personal Car Leasing Allows You To Drive A Brand New Car For A Monthly Rental Fee.

Personal car leasing is a type of contract hire, which allows you to drive a brand new car for a monthly rental fee. With personal lease finance, you pay a monthly rental fee for the car without having the option to own it at the end of the agreement.

Personal lease contracts are usually for between two and five years. If you hand the car back at the end of the contract period and you have exceeded your mileage limit, you may be charged extra.

When applying for personal lease car finance through us, we’ll estimate how much we think you will be eligible for. We want to offer you the best deal possible, meaning that by sharing the various prices with you, you can make the best-informed decision. 

Can I Get Personal Leasing Car Financing With Bad Credit?

Yes, you can! However, your rates may be different compared to those who have good credit. It is possible and shouldn’t deter you from applying for a PCH deal. If you get in touch with one of our advisors, they could get you in touch with a specialist lender. These lenders may be able to help you secure a personal lease car finance that suits your budget. 

Bad credit car finance is available to you, even if you have been rejected by lenders in the past. 

To Conclude

Personal car leasing allows you to drive a brand new car for a monthly rental fee. It can be great for those who don’t want to commit to paying off a car but still want the freedom of owning their own vehicle. The more research you do before signing up, the better your experience will be!Our team could help you find the best option according to your needs and budget. Whether that means taking out a personal contract hire agreement (PCHA) or letting us arrange everything for you on our behalf via our specialist financial advisers. Make sure to apply for a quote so we can see what we could do for you, today!

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