What is a Personal Lease?
Personal leasing, also known as Personal Contract Hire (PCH), is a flexible and cost-effective way to drive a brand-new car without the commitment of ownership. Instead of purchasing a vehicle outright or via finance, you lease it for a fixed term, typically between 24 and 48 months, and make affordable monthly payments.
At the end of the lease, you simply return the vehicle without worrying about depreciation or resale value, giving you the freedom to upgrade to a new model if you wish.
How Does Personal Leasing Work?
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Choose your vehicle – Select the make, model, and specification that best suits your needs.
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Agree your terms – Set your preferred contract length, annual mileage, and whether you would like maintenance included.
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Drive and pay monthly – Make fixed monthly payments for the duration of your lease.
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Return the car – Hand the vehicle back at the end of the contract, with no further commitment (subject to mileage and fair wear and tear).
Benefits of Personal Leasing Compared to Buying
Lower Monthly Payments
Leasing typically offers lower monthly payments compared to purchasing a car via finance or outright, as you’re only paying for the vehicle’s depreciation during the lease term.
Access to Newer Vehicles
With leasing, you can drive a brand-new car every few years, always enjoying the latest technology, improved fuel efficiency, and enhanced safety features without the long-term financial commitment.
No Depreciation Concerns
Vehicles lose value over time. With personal leasing, this isn’t your concern. You avoid the stress of falling resale values and the hassle of selling the car when you’re ready for a change.
Budget-Friendly and Predictable
Fixed monthly payments, optional maintenance packages, and no hidden costs mean you can manage your finances more effectively, with no unexpected bills.
Hassle-Free Motoring
There’s no need to worry about trading in or selling the car when your contract ends, just return it and choose your next vehicle.
Leasing vs Buying: A Quick Comparison
| Feature | Personal Leasing | Buying |
|---|---|---|
| Monthly Payments | Lower | Typically higher |
| Ownership | No | Yes |
| Upfront Cost | Low to moderate | High |
| Maintenance Options | Often included | Owner’s responsibility |
| Depreciation Risk | None | Owner bears the cost |
| Flexibility | High | Lower |
| End of Term Process | Return the car | Sell or trade in |
Is Personal Leasing Right for You?
Personal leasing is perfect for individuals who:
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Want to drive a new car every few years
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Prefer lower, predictable monthly costs
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Do not want the financial risk of owning a depreciating asset
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Enjoy flexibility and hassle-free motoring
Whether you're looking for a petrol, diesel, electric, or hybrid model, personal leasing can provide a modern, cost-effective, and convenient alternative to traditional car ownership.
Fact #1: Because you’re only paying for the car’s depreciation (not the full value), personal lease payments are often significantly lower than hire purchase or personal contract purchase (PCP) deals.
Understanding the Jargon
Car leasing can sometimes sound more complex than it really is, especially with industry terms like PCH, initial rental, and fair wear and tear.
PCH stands for Personal Contract Hire, which is just another way of saying personal leasing.
The initial rental is the upfront payment you make at the start of the lease—usually equivalent to 3, 6, or 9 monthly payments—and it’s not a deposit in the traditional sense (you don’t get it back).
Fair wear and tear refers to the acceptable level of use the vehicle can show at the end of the lease—normal wear from day-to-day driving, not damage.
And finally, excess mileage means any miles you drive over the agreed limit, which could result in additional charges. Understanding these terms makes it easier to compare deals and choose the right lease with confidence.
Fact #2: According to the British Vehicle Rental and Leasing Association (BVRLA), personal leasing now accounts for over 20% of all new car registrations by leasing companies, reflecting a major shift in consumer behaviour.
Who Can Benefit from Personal Contract Hire?
Personal Contract Hire (PCH) is ideal for individuals who want a hassle-free, flexible way to drive a new car without the long-term commitment or financial risk of ownership. It’s particularly beneficial for people who enjoy upgrading to the latest models every few years, value fixed monthly payments, or don’t want to worry about depreciation and resale. Whether you're a city driver needing a compact hatchback, a family looking for a spacious SUV, or a commuter interested in electric vehicles, PCH offers a tailored, cost-effective solution. It’s also perfect for those who want to bundle in servicing and maintenance for complete peace of mind.
Our Latest Personal Lease Offers
Fact #3: More than 50% of new personal lease contracts in 2024 were for electric or hybrid vehicles, driven by lower Benefit-in-Kind rates, environmental awareness, and government incentives.
Hear from Our Happy Customers
At Silverstone Leasing, we believe the best way to understand the quality of our service is to hear directly from the people who matter most – our customers. In these short video testimonials, you’ll see real experiences from individuals and businesses who’ve leased with us. From first-time drivers to fleet managers, their stories highlight the care, transparency, and expertise that set us apart.
Do I need a deposit to lease a car?
Personal car leasing, or Personal Contract Hire (PCH), is a fixed-term agreement where you pay monthly to use a vehicle without owning it. At the end of the contract, you simply return the car.
A typical lease includes the use of the car, road tax, and manufacturer warranty. Optional maintenance packages can cover servicing, tyres, and breakdown cover.
You return the vehicle and can choose to lease a new one. No need to worry about selling or depreciation.
Yes, most personal lease agreements require an initial rental, usually the equivalent of 3, 6, or 9 monthly payments upfront, though some no-deposit deals are available.
Leasing companies run credit checks, so having a good credit score increases your chances of approval. Poor credit doesn’t make it impossible but may limit your options or increase the cost.
You return the vehicle to the leasing company. Provided it’s within agreed mileage and in fair condition, there are no additional charges. You can then choose to lease a new car.
At Silverstone Leasing, we encourage customers to assess total cost of ownership and not just monthly payments, ensuring your leasing package aligns with your business goals and budget.
Yes, but early termination fees often apply. These fees vary depending on how much time is left on your contract, so check the terms carefully.