PCH is not all it's cracked up to be.   When you hand the car back at the end of the term, a fine toothcomb may be used to pick up on every little stone chip, every little stain on the upholstery etc.   There is a BVRLA guide on "Fair Wear and Tear" but it's a lot easier to avoid the hassle by not getting involved with Contract Hire or Leasing in the first place.   PCP means that, provide your mileage estimate was reasonably accurate, your vehicle should be worth the GFV, or even slightly above, hopefully providing something towards your next deposit. 

http://www.bvrla.co.uk/service/fair-wear-and-tear-guides

Edited 8 January, 20179 yr by bealine

The BVRLA wear and tear guide applies to a PCP deal too if you hand the car back.

 

It's the same people picking up and inspecting the car so the same standards apply.

 

A lot of people get worried about the extra charges that might be applied to any car on finance but again it is quite simple. Look after the car like it is your own and you'll have no issues.

 

I think it has been mentioned by a few people now. The only number of any importance is the total amount payable. Everything else is just marketing fluff.

 

Sure, some PCP deals attract dealer or manufacturer contributions, low interest rates, free servicing etc. but this isn't free, it is simply incorporated into the total price paid.

 

This is the beauty of PCH, there is nothing to hide, no slippery salesman, no hanging around dealers, waiting for calls, no negotiation, no silly games watching the salesman walk back and forth from the managers office, no paint protection guff etc. etc.

 

Instead look online, send off an email, pay a deposit followed by a set amount of monthlies and throw the keys back. No need to worry about values, depreciation, negative equity, final payments...

Edited 8 January, 20179 yr by silver1011

I understand the concern about the costs for damage to the car on PCH.

Having read the guide, its not that punitive, they expect some wear and tear, a few chips and short scratches/dents. Its not as if you have to hand the car back in showroom condition.

However I understand it might not suit everyone, if your lifestyle means your car gets a lot of damage, scratches, bumps, dirt etc, then PCH might not be for you and would end up costing you a lot to fix the faults before handover.

As silver1011 says, PCH is a lot less hassle, order online/phone, know exactly how much you are paying, and just hand back at the end.

But if you buy a car outright and then ruin it, it'll still cost you as it's worth less when you sell it or trade it in.

Pcp and pch are no different there.