Stop Buying on Pcp, Start Leasing With Pch and Save Thousands!

PCP vs Leasing…one letter makes all the difference in saving you ££££!

New research findings show that 53% of homeowners don’t know what the car finance PCP (Personal Contract Purchase) abbreviation stands for.

And, the 47% of respondents who claimed they did know what PCP meant, actually didn’t know with over half (56%) getting the definition wrong. This research was so shocking that it formed the basis of an article in The Sun and AM Online.


Personal Contract Purchase is a purchase plan, giving customers the option to buy the car at the end of the contract.

Personal Contract Hire (the leasing product provides) is a hire plan that offers attractive monthly rentals and lower initial rentals, with the ability to upgrade to their next new car at the end.

While you benefit from similar things on both agreements, such as:

  • Fixed monthly rentals
  • Choice of contract period from 24-60 months
  • Optional maintenance
  • Less administration

…there’s one major difference between the two: the deposit is usually far higher in a PCP agreement.


Did you know?

Some simple maths and comparisons between our leasing deals and manufacturer-provided PCP finance deals showed a huge difference in the sizes of initial deposits – with PCP initial deposits sometimes £7,000 higher. We averaged those prices out across four of the most popular cars on the market right now showing that, on average, 56% of car drivers could have saved £4,424 if they’d leased.**

This leads to the biggest question: if drivers are already handing back the cars at the end of PCP deals anyway (research has found that 56% of PCP buyers renew or return the car at the end of the contract, with only 44% paying the optional balloon payment to keep the car)why aren’t they leasing on PCH contracts and saving themselves money on the up-front initial rentals?

Leasing through PCH opens doors – it’s the cost-effective, hassle-free way to drive a brand-new car. Leaving you with opportunities to do MORE, because you’ve spent LESS on your new car.


Here’s a like-for-like comparison on a new Nissan Qashqai N-Connecta, (36-month contract, 8,000 miles per year). Prices correct as of October 2018.


Leasing with PCH vs PCP Comparison

Leasing with PCH

PCP Leasing

  • Initial rental - £1,493
  • Monthly rental - £248
  • No final rental
  • Initial rental - £6,282
  • Monthly rental - £252
  • Optional final payment - £10,383

Make sure you’ve got all the facts before entering into a PCP agreement. As you’ll find out, one letter can make all the difference!

Want to know more about leasing? Check out our leasing guide for more info.

Got a question? We bet the answer is in our FAQs.

>> View our cheapest car lease deals with Personal Contract Hire (PCH).

*Methodology (price comparison – 26th October 2018):

  • Identified four best-selling models across leading manufacturers (Mercedes-Benz, Ford, Vauxhall and Nissan).
  • Calculated the total difference in initial payment/deposit and monthly rentals on a Motorama PCH deal compared with a manufacturer site-quoted PCP deal.
  • Across the total duration of a given deal, you would need on average £4,424 higher initial payment/deposit on a manufacturer site-quoted PCP deal than a Motorama PCH deal (excluding any balloon payment at the end).