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PCH - frequently asked questions

On this page you will find answers to many of the common questions that people have about leasing a car through a PCH agreement.

If you can't find the answer you need below then please feel free to get in touch directly and we will be more than happy to help.

What is a Personal Contract Hire (PCH) agreement?

A personal contract hire (PCH) agreement involves you signing a contract to lease a car for a fixed period of time, with a specific amount of miles permitted per annum. You will pay an advance rental prior to delivery of the car and then a monthly payment until the end of the agreement.

What are the criteria for getting a Personal Contract Hire car?

Our funding partner Close Brothers will assess your suitability for finance and require five years of employment and address history to run a credit and affordability check. They will also assess joint applicants, which is useful for individuals who want to lease cars for members of their family.

Who is the legal owner of the vehicle?

Maxxia Ltd is the owner of the vehicle and will be named on the V5 document. There is not an option for you to own your vehicle throughout or after completion of a PCH agreement.

What does the payment structure mean?

A lot of people are unsure as to what the payment structures of a PCH agreement actually means. Here is a simple breakdown with an example:

Example - 3 + 35. This would be a 3-year contract made up of 36 individual monthly payments. The initial rental is 3 x the standard monthly rental amount, followed by 35 standard rentals.

So, if the standard monthly payment was £119.99, the initial payment would be £359.97, making the contract 1 payment of £359.97 and then 35 payments of £119.99.

In PCH you will pay an initial rental, this is not a deposit, and is not returned to you at the end of the agreement.

Can I part exchange my current car as part of the lease agreement?

No we can't accept your vehicle as part-payment for your PCH vehicle.

What lengths of contract are available?

Our minimum term for a PCH agreement is 24 months, with the maximum capped at 60 months (five years).

What is included in the optional maintenance package?

Maintenance covers all routine maintenance, servicing, tyres, batteries, exhausts and any necessary car repair costs but not accident damage. If the deal does not have the optional package, you will have to pay for maintenance and servicing.

Is road tax included as part of the PCH price?

Road tax is included as part of the PCH price and reflects the price of road tax at that time. If the road tax cost increases during your contract you will be sent an invoice to pay the difference, this also works the other way too, if road tax is reduced you will be sent a cheque to give you the difference back. We tax the vehicle for you and send you a notification to let you know this has been done.

Is insurance included as part of the PCH price?

No, insurance is not included as part of the monthly PCH price and must be arranged by yourself prior to delivery of the vehicle.

How do I get car insurance if I’m not the registered owner?

When you are looking for a insurance quote on a PCH car, the insurer will ask if you are the registered keeper and legal owner. At this point you would respond ‘no’ and fill in further details about the company you are hiring from.

What happens if I want to end my PCH early?

There is no option to end your PCH agreement early.

Can I amend the agreed mileage part-way through a contract?

Yes but please note that this will usually mean altering your monthly payments.

What happens if the car gets damaged during the PCH agreement?

If the damage is within BVRLA Fair Wear and Tear standards (which can be found here), you will not be charged. If the damage is more severe, this should be fixed as soon as possible and prior to returning the vehicle at the end of contract to avoid any charges. All repair work must be carried out at a manufacturer approved repairer using only genuine parts.

What happens if my PCH car is written off?

Typically the insurance company will negotiate directly with us as the registered owner of the vehicle. If there is a difference between the value of the vehicle and the amount of the loan outstanding, you will be liable for the difference. You may want to consider Early Termination insurance or G.A.P insurance to cover you for any costs.

What happens if I exceed my agreed mileage?

If you go over your agreed mileage, there is a surcharge to pay for each mile above this. This is usually in the range of 5 - 30p per mile and changes from car to car - please ask your adviser what the excess mileage is on the specific contract you’re looking at.

What happens at the end of my lease?

Prior to the end of your contract we will get in touch to remind you that your vehicle is due to be returned. On the day, an initial appraisal will be done to review the vehicle against the BVRLA’s standard fair, wear and tear guidelines. The fair wear and tear policy ensures you will only pay for damage that is not seen as arising from day to day use. Click here to review the guide.

Can I keep my car at the end of my contract?

It may be possible to extend your lease for an additional fixed period, but there is no option to own your vehicle.

Can I lease a car if I have bad credit?

As a responsible lender and FCA-regulated company, we will perform a credit check before completing a PCH agreement. This is necessary to protect both you and us, by ensuring that the vehicle you are applying for is affordable.

Where do you source your PCH cars from?

All cars are supplied from manufacturers' dealer groups. We have a preferred panel of dealers that offer excellent customer service levels to our customers.

Can I lease a second car?

You can lease as many cars as you can afford! Please be aware that applying for a second vehicle will impact your credit rating. You should ensure that you can afford the monthly repayments on leasing more than one car before enquiring.

Can I put a personal number plate on the car?

Yes, this is not a problem. There is a fee to transfer the number to the car and a fee to transfer it back again. Please phone the help desk for further details on 01908 219398.

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