What is Personal Contract Hire (PCH)?

Once you’ve chosen your Volkswagen and decided on your initial deposit, there are three other decisions that will affect the monthly rental payments.

Agreement length

• Decide how long you want your agreement to be, the longer it is, the lower your monthly payments will be. Your agreement can be anywhere from 12 to 48 months.

Mileage per year

• Figure out how many miles you expect to drive each year. The more you expect to drive, the higher your monthly payments will be. Exceeding this will result in excess mileage fees.

Service Plans

• Decide if you want to include any service, maintenance or tyre plans to your agreement. Adding a service plan will increase your monthly payments but it protects you from inflation by fixing prices at todays rates.

At the end of a Personal Contract Hire agreement, you simply return the vehicle. During this handover we will inspect the mileage and condition of the vehicle. Small things like stone chips, light interior wear and very small minor scratches are considered acceptable condition and won't result in any charges. Whereas things like panel dents, torn upholstery, deep scratches and kerbed alloy wheels would result in extra charges.

We recommend reviewing the fair wear and tear guidelines before returning your vehicle.

There are plenty of benefits to PCH like fixed monthly payments, which can make it easier to budget. PCH also has lower monthly payments than other finance agreements, like Personal Contract Purchase, because you’re paying towards the depreciation of the car during your contract. With PCH you’re also able to drive a new Volkswagen without the stress and hassle of resale, simply return the vehicle and choose a new one.

Insurance

• You are responsible for your own fully comprehensive insurance. There are plenty of comprehensive insurance plans available through Volkswagen Insurance.

Fuel or charging

• You are responsible for all fuel and charging costs. If you're leasing an EV you can reduce your charging costs with WeCharge.

Servicing, Maintenance and Tyres

• These are optional extras that can be added onto your fix monthly payments.

Ownership

• There is no option to purchase your vehicle at the end of the agreement period.

Road Tax

• This is covered by your monthly payments

Manufacturer warranty

• All new vehicles are covered by our comprehensive Manufacturer warranty

Breakdown cover and more

• With Volkswagen Driverline you have access to 24/7 contact number that can help you with Breakdown and Recovery, Accidents and Damage, Service & Maintenance Bookings, Tyres as well as Windscreen and Glass Repair.

• Ownership of the vehicle will always remain with Volkswagen Financial Services, and it is really important that you keep up to date with your monthly repayments. Please contact us if you are having any difficulties as the vehicle may be at risk if you don't.
• Contract Hire agreements are not designed to be settled early. If you wish to end your agreement early you can request an early termination quote to cover the cost of the remaining rentals.
• If you exceed the agreed mileage set out in your agreement, then excess mileage charges will apply. If during your agreement you think you will go over your anticipated mileage, then please contact Volkswagen Financial Services to discuss the options available.
• It is important to keep your vehicle in good condition as you may be charged for any damage that goes beyond fair wear and tear.