A Personal Contract Hire (PCH) agreement is an option you can use to fund a lease vehicle. You're asked to decide on how long you'd like to lease the vehicle for, called the contract length, which can range from 24-60 months. You also choose your annual mileage, which is how many miles you will be driving each year. You decide on how much money you'd like to pay in the first month of your contract; called an initial rental. This is typically 3, 6 or 9 times the monthly rental, but can also be customised to suit you. The higher the initial rental, the lower your subsequent monthly rentals will be. The initial rental goes towards the total cost of the contract, and as such is not a deposit and won't be returned at the end of the agreement.
At the end of your contract, the collection is arranged and the vehicle is taken back.