What’s the difference between PCP, Lease Purchase and Contract Hire?

The question that everyone always asks is What is the difference between a Personal Contract Purchase (a PCP), a Lease Purchase and a Contract Hire?

It's a very good question, Alex. It's very good. Now I'm gonna start us off with what is PCP? Now PCP, let's break it down, Personal Contract Purchase, try and say that as fast as possible. That's the first time I got it right.

Now PCP is a deal where you have two options. You will own the car, your V5 will be in your name, and at the end of the the deal, you will choose either a. Yes. I want that car. I want to keep it and pay the balloon payment off or B. No, I don't want a car anymore and I'm gonna give it back.

Yeah, And at Lease Purchase is actually very similar to a PCP. However, with the Lease Purchase, you are obliged to pay a balloon payment at the end of the contract so the car is yours.

Not many options there, but this one is the real kicker. Contract Hire is what we offer here at LeaseLoco so you don't own the car. You lease the car. You can pay an initial payment upfront, and this initial payment can range anywhere between one month of lease payment fees up to nine months. Very good, now do remember, the more you pay up front will reduce the monthly amount that you could be paying. So do find out what deal suits you and go from there. So Contract Hire, lease the car, you give it back at the end of the term and you get a nice shiny new one at the end of it.

Exactly, yes. I know which one I like the sound of most.