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Personal Contract Hire

Frequently Asked Questions


What is Personal Contract Hire (PCH) and how does it work?

Personal Contract Hire (PCH) is a finance option available to individuals, rather than businesses. It gives you flexibility to be able to choose your perfect vehicle, configure your contract to suit your needs and means you can enjoy the luxury of a brand new vehicle.

First, you’ll need to tell us how regularly you’ll be using the vehicle and how long you would like it for, so we can offer the best solution for your requirements, with the initial rental and fixed monthly rentals set out, so you’re completely aware of your outgoings.

At the end of the PCH agreement, you can decide how to move forward. Whether to renew your lease, choose another brand new vehicle to lease with us or simply give the vehicle back.

How can Personal Contract Hire (PCH) benefit me?
  • Fixed monthly rentals, so you always know where you stand
  • Delivery of your new vehicle straight to your door
  • Option to include maintenance within your contract to avoid unforeseen costs
  • Choose from a range of manufacturers and models, to ensure you find the perfect vehicle
  • Configure your contract to suit, including duration, mileage and optional extras
  • Vehicle Excise Duty (VED) included within your monthly rental, subject to government increases
  • No depreciation or resale concerns, as you simply hand your vehicle back to us at the end of your contract.
What is the difference between an initial rental and a monthly rental?

An initial rental and monthly rentals are payments that you will make as part of your Personal Contract Hire (PCH) finance agreement with Alphabet.

At the beginning of your contract, you will be required to pay an initial rental. This payment is designed to make your monthly rentals more affordable. The overall cost of your lease remains the same, but the way in which you choose to break it up, is up to you.

The amount you choose to pay as an initial rental will be taken off the total cost of your lease. The remaining balance of your lease, will be distributed equally into monthly rentals, until the end of your contract.

In general, the larger your initial rental, the lower your monthly rentals and vice versa.

What is maintenance and why would I need it?

You might think that because Alphabet’s vehicles are brand new, that they won’t need any TLC. Well, in fact every vehicle, whether it’s just been driven off the forecourt or is ten years old, needs attention of some sort. That’s why adding maintenance into your contract gives you extra peace of mind.

Keeping your vehicle on the road can take time and specialist experience. Maintenance will cover unforeseen costs such as replacement tyres, brake pads and discs and other repairs.

Benefits of adding maintenance to your Alphabet PCH contract:

  • Budget with confidence - fixed costs for regular servicing and repair or maintenance
  • Fair usage tyre replacements and puncture repairs
  • Roadside assistance
  • MOTs as and when you require them
  • Support from our qualified team via our 24/7 helpline, online and via the AlphaGuide app

We give our customers the freedom to choose to include maintenance within their contract or not, because we understand that every individual has different needs. If you feel you could benefit from adding maintenance into your contract, we’d be happy to talk you through it.

What is Fair Wear and Tear?

BVRLA definition: Fair wear and tear occurs when normal usage causes deterioration to a vehicle. It is not to be confused with damage which occurs as a result of a specific event or series of events such as impact, inappropriate stowing of items, harsh-treatment, negligent acts or omissions.

Check here for the BVLRA Industry Standard Fair Wear and Tear Guidelines for cars and LCV's.

What is an acceptable level of wear and tear on my vehicle?

When you return your vehicle to us at the end of its lease period, we need to make sure it's not damaged and is in a reasonable condition.

We suggest you check your vehicle for damage at least 10 weeks prior to returning it, to ensure you have sufficient time to rectify any faults that fall outside the industry standard, the BVRLA Fair Wear and Tear Guide.

Should your vehicle have any damage, you will need to organise the repair under your motor insurance policy before returning it to Alphabet. Any damage found to be outside of the approved BVRLA Fair Wear and Tear Guidelines will be noted and a charge may be applied for any repair costs that are necessary.

Do I need to insure my vehicle?

Yes, you must take out and maintain comprehensive insurance for the vehicle (in your name) for the duration of the agreement and inform the insurance company that Alphabet is the owner of the vehicle.

If the vehicle suffers any damage, you must arrange for the vehicle to be repaired and pay for any repairs not covered by your insurance policy.

Please note, if you require your vehicle for business purposes, you will need to stipulate this within your insurance policy.

What if I want to come out of my contract early?

If you need to terminate your contract with Alphabet early, you can do so but this may be subject to an Early Termination Charge.

For more information, please email your vehicle registration, current mileage and reason for early termination to

Can I change my contract if my circumstances change?

You may be entitled to reschedule your mileage or contract term if your circumstances change.

If you are interested in altering your mileage, please share your current mileage and your new required total contract mileage with us. If you want to change your contract term, then please share information about your current contract term and your new desired contract term.

The email address to use for this is

Hi, I am Alphie. How can I help you?