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Personal Contract Hire (PCH)
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Also known as personal leasing, Personal Contract Hire is a long-term rental agreement common in the car trade.
Ownership of the vehicle does not pass to the instalment payer but you would still be liable for the full amount if the car is written-off in an accident (this means do not insure third party only!).
Personal Contract Hire may make most sense if you are self-employed - ask your accountant for advice.
Last Updated: May 2007 © Moneyextra.com
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