Is car leasing better than Personal Contract Purchase (PCP)?

Is car leasing better than Personal Contract Purchase (PCP)?

Is car leasing better than Personal Contract Purchase (PCP)?
13 May 2022

There are many options available to you if you want to lease a new car, so it can be hard to decide which one is best.

While car leasing and Personal Contract Purchase (PCP) may sound similar, they are two different types of contracts. Leasing a car means that you rent it for a set period of time, usually two to four years but not longer than five years. In exchange for a monthly payment, you can use the vehicle up to the predetermined mileage. When the contract comes to an end, you return the car to the funder with nothing left to pay (providing that there is no damage or excess mileage). 

If you don't like the idea of paying every month for years and walking away with nothing, you might want to consider the Personal Contract Purchase. With this kind of car financing, you will also make monthly payments, but you won't have to return the car to the funder once the lease contract is over. PCP gives you the option to purchase the car for an additional fee. 

In terms of your monthly budget, PCH is more affordable since you are only paying for the use of the vehicle. Since you're paying off the entire value of the car, your monthly instalments will be much higher with a Personal Contract Purchase. 

Learn about all your car leasing options by clicking below. 


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