Yes there is a difference here, with contract hire your vehicle is leased to your for a set amount of time whether it be 1 year or 2 years for a set monthly re payment and pre agreed mileage allowance. Servicing and maintenance is often included with this contract hire and you will hand your car back when the lease expires.

With leasing a car you are responsible for the upkeep of the vehicle so any repairs or servicing that needs to be done, you will pay for or your company. Often with leasing you are given the opportunity to purchase the vehicle at the end of the lease.

What do PCH and PCP stand for; these are types of Personal Contract Hire and Personal Contract Purchase for a private individual who likes the idea of a fixed monthly repayment plan.

If you’re running a company you will also be able to claim varied amounts of vat back on any leased or contract hire cars that you run.

Prices for monthly repayments will vary from company to company but a good rule of thumb is that a car with a lower depreciation value will have lower monthly repayments.