With the cost of everything seemingly always on the rise and new electric cars coming thick and fast, PCH is booming because it offers low, predictable monthly payments and lets you jump into a brand-new car at the end of the lease period without the hassle of selling it. 

Central Contracts’ latest figures show that consumer demand for PCH is up sharply, proving the average Brit is waking up to this brilliant way to beat the cost-of-living squeeze on the driveway. 

Navigating the world of car finance can be confusing, but understanding the options is the first step to making the right choice for your lifestyle and budget. The main ways to acquire a new car are through various finance agreements or by purchasing it outright.

Why you should zone in on PCH for your next car

Gareth Roberts, strategy director at Central Contracts, highlights just why PCH is the real winner. 

• Lower monthly payments: PCH deals often have the cheapest monthly payments of any finance option. You’re only paying for the car’s use, not its full purchase price. This makes driving a brand-new, safer, and more fuel-efficient car affordable again. 
• Zero depreciation risk: When you buy a new car, its value plunges. With car leasing the leasing company takes that risk, not you! If the car is worth less than expected at the end, that’s their problem, not yours. 
• Hassle-free motoring: Road tax is usually included, and you can add a maintenance package to cover servicing and replacement tyres. It’s fixed-cost, hassle-free driving. At the end? Just hand back the keys and grab your next new motor*. 
• Try electric vehicles (EVs) safely: With EV technology changing so quickly, many people fear buying one outright. PCH lets you drive a brand-new EV for 2-4 years, allowing you to enjoy the latest tech, and swap it for a better model without worrying about the battery’s long-term value – or being stuck with a car that has outdated tech.

PCH: winning the battle against the cost of living

Gareth said: “PCH is your shield against the cost-of-living crunch on the driveway. You lock in low, fixed monthly payments and you’re completely protected from the car’s value dropping, which is a risk no one needs right now. 

“And, with PCH, you’re not buying yesterday’s technology, you’re renting tomorrows. It’s the smartest way, for example, to try an electric car, enjoy the latest safety tech, and simply swap it for the next model when your contract ends.

“Finally, PCH is the ultimate ‘hands-off’ approach to new car ownership. No stressful selling, no depreciation worry, and often the road tax and servicing are all bundled into one easy payment, so you just focus on driving.”

Here’s Central Contracts’ guide to choosing the right finance for your next car 

Both PCH and PCP deals have strict annual mileage limits. Go over the limit and you’ll be charged with an extra per-mile fee. If you’re a high-mileage driver, consider the options carefully.

How much do you pay for the different car finance options?

PCH costs less per month for your new car

Leasing offers the most cost-effective way of driving a new car without ever owning it. The other finance agreements are generally more expensive, and you end up owning the car. But in a world of volatile used car prices and rapidly changing technology, is this the best use of your money when you could be stepping into a new car on a regular basis?