If you’re new to the world of car leasing, it can be quite confusing at first. That’s why we’ve put together this handy guide to provide a useful overview of personal contract hire (PCH).
Did you know that we also offer PCH via our digital leasing brand, ZenAuto? Our team of car experts are on hand to help you build a personalised lease that works for your lifestyle, 100% online. With access to all the major makes and models along with flexible initial payments, mileage, and length of lease, it’s the hassle-free way to do personal car leasing.
What is PCH?
Personal contract hire is a lease, just think of personal contract hire like a long-term rental. Here’s how it works:
- You lease the car over a set amount of time, usually between 2-4 years
- When you order your car, you’ll decide your mileage allowance, initial payment, monthly payments and length of lease
- It’s important to note that you will never have the option to own the car at the end of your lease (it will be returned to us) – this often makes the overall cost of the lease cheaper than buying the car outright
- PCH leases also include VAT
- PCH is a good option if you like switching cars regularly or don’t want the stress of selling a car.
Do I need to insure the car I’m leasing?
Yes, you must have a policy in place from the day your car is delivered to the day your lease ends. That way, if you damage someone else’s car or your own, you’re covered.
Make sure to tell your insurance provider that you’re insuring a lease car and the lease company is the registered keeper of the car. Other than that, there’s no real difference between insuring your own car or a lease car. It’s simple and straightforward!
What’s included in a ZenAuto PCH lease?
If you’re looking for a hassle-free way to get a new car, a ZenAuto lease could be the perfect option for you. Let’s take a closer look at what is and isn’t included our PCH leases.
| What’s included | What’s not included |
|---|---|
| Breakdown assistance and recovery from the AA | Car insurance |
| A manufacturer’s warranty on any parts that need repairing/replacing | Maintenance and servicing if you didn’t choose those options when you ordered |
| Road tax* | Fuel |
| Maintenance and servicing if you choose those options when you order | Any fines/penalties that are incurred in connection with using the car (e.g. speeding tickets, parking fines) |
| Free Mainland GB delivery |
*Road tax is included in the lease, but please be aware that you will be charged for any increases to your car’s Road Fund Licence throughout your lease term.
ZenAuto’s maintenance package
| The Service | Without | With |
|---|---|---|
| Breakdown cover inc at home |
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| Road fund licence |
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| Breakdown cover abroad |
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| Help if you fill up with the wrong fuel (for a charge) |
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| Servicing, including booking with an authorised dealer |
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| MOTs |
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| No quibble tyre repair |
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| Replacement tyres |
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| Help with manufacturer warranty claims if you need it |
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| Repairing vandalism damage | ||
| Recovering keys if you lock them in the car | ||
| Repairing alloy damage |
Frequently asked questions about ZenAuto leases
Yes, you can end your lease and return your car at any point during the contract (this is called early termination). The fees differ depending on what agreement number you’re on: ZA or ZB.
If you’re on a ZA agreement, you’ll need to pay 40% of the total amount of remaining monthly payments.
If you’re on a ZB agreement (this includes Business Contract Hire agreements) you’ll also pay 40%, unless you decide to end your lease in the final 3 months, then you’ll pay the full balance of your final monthly lease payments.
A common misconception is that you’ll be charged extortionate amounts when returning a lease car. End of contract fees do exist – like excess mileage and damage charges. As long as you keep to your mileage allowance (don’t worry, you can change your mileage throughout your lease if you’re using more or less miles) and keep your car in good condition, you won’t need to pay a fee.
Plus, leasing companies are aware that driving a car daily for 2-4 years will resort in some minor fair wear and tear, which you won’t be charged for. But for things like big dents, scratches, and heavily kerbed wheels you will be responsible for the repairs.
Excess mileage
You will have to pay per mile if you go over the mileage allowance stated in your agreement:
- The price per mile varies depending on the car and contract
- When you come to placing your order and signing the contract, you’ll be able to view the excess mileage charge for your lease on the agreement doc
- If you decide to hand back the car earlier than the agreed lease period, your mileage allowance will be prorated
- If you’re leasing a used car, from the day the car is delivered, you will have 7 days to check you are happy with it – your mileage allowance will be prorated over these 7 days.
Damage fees
- Once the car is returned at the end of the lease, it will be assessed by a BVRLA trained inspector
- Any damage that falls outside of the BVRLA fair wear and tear guidelines will be emailed through for the customer to pay
- The BVRLA define fair wear and tear as ‘deterioration to a vehicle through normal use’
- They’ve even produced a guide to tell you what would be classed as ‘fair wear and tear’ and what damage you might be charged for, so you can decide whether to get it fixed before the car comes back to us
- The core principle is that the car’s condition should be in line with its age and mileage when returned – so a one-year-old car should look practically new whilst a 4-year-old car isn’t expected to be pristine
- Remember to keep the interior in good condition, too – torn seats, stains and cigarette smoke smells can lead to fines as well
If you would like to add a cherished/personalised number plate onto your lease car, please let us know as soon as possible in the order process:
- There’s a £20 admin fee for ZenAuto to transfer the plate initially
- When you want to remove the cherished plate, there’s a £40 admin fee + £80 DVLA retention fee (£120 in total)
Yes, but you have to let us know and pay the £10 admin fee so we can get you the required travel documents.
Be sure to keep these documents in your glovebox whenever you’re abroad. And remember they’re only valid for 12 months and then you’ll need to pay a further £10.
When you go abroad, the car must not remain abroad for more than 90 days at any one time and you must ensure before you go that no service is due and there are no maintenance issues with the car that have not been addressed.
Of course – you don’t even need to let us know, just make sure that any additional drivers are named on your insurance policy.
Yes, you must treat the car and look after it as if it was your own car. This means insuring the car and maintaining it correctly. You’ll be responsible for servicing the car annually and any MOTs during the length of your lease.
Interested in hassle-free personal leasing?
To start your journey and browse the wide range of cars from top manufacturers, click on the link below.
