With a personal contract hire agreement you take control of a vehicle for a contractual period - usually referred to as the 'lease period'. You will make fixed monthly payments for the duration of the contract - when the contract expires you will simply return the vehicle and take out a new personal contract hire lease. PCH means you never have to worry about resale values of your vehicle. Insurance groups range from 1 to 50 and dictates the cost of the vehicles insurance. The higher the group, the higher the insurance will be for the vehicle.
BHP rates the engine performance of vehicles and stands for the brake horsepower. CO2 is the amount of carbon dioxide emitted by the vehicle in grams per kilometre travelled, the lower the CO2 emissions the cleaner the vehicle is for the environment. The higher the letter the greater the cost of tax paid to drive the vehicle on public roads.
This is charged until the vehicle is 6 years old.
You choose the vehicle, the deposit, how long you want the contract to run for and the mileage you intend to do. You will then receive a quote for fixed cost motoring for the length of the contract. At the end of the contract you have a choice to either buy the vehicle outright for an agreed lump sum the GFV or final balloon payment , or hand the vehicle back to the lender.
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