What is a personal lease on a vehicle?
A car lease is a method which allows you to experience the luxury of driving a new car every few years without worrying about its resale value and other issues. Two types of car lease can be done. Personal lease or PCH i.e. personal contract hire and PCP personal contract purchase
With a car lease you can never own the car even at the end of all the lease payments, but with PCP you are allowed to purchase the car if you pay the full amount at the end. Mind you, if you want to purchase the car at the end of the leasing period, start saving big cash amounts right from today.
In some ways, a PCH is better than PCP. The monthly rental payments or simply said lease amounts are much lower for personal contract hire than PCP. They are often even lesser than the personal car loan that some people have to pay.
You get the liberty to choose the supplier of your choice whenever you want to change a car and get a new one in a personal lease, however, in PCP you might have to be stuck with the same dealer until you use up all your equity that remains with him.
When you plan to buy the car at the end of the leasing period, you have to worry about the warranty costs, sales values and depreciation amount of the car, while with personal leasing this worry is for the dealer. All you have to do is pay your lease and enjoy the drive without worrying about anything that doesn’t concern you.
PCH/ personal leasing always work way low-priced than PCP at any time and any day.
Whether you’re going to choose personal lease on a vehicle or you’ve a plan to purchase it at the end, the choice is yours. And the important thing to keep in mind here is not only personal leasing of cars is cheaper, but it also gives the freedom to change your car anytime. It reduces your worries for warranty and other details and lets you change the dealer too. Also, it allows you have the luxury of driving not one but many cars of your dreams in much lesser price. Therefore choose wisely.