Personal Contract Hire and your Business Fleet


What is personal contract hire?

Personal contract hire (PCH) is typically used by employees who either don't have (or choose to opt out of) a company car scheme. They enjoy the use of a new car without depreciation risk or a large initial outlay.

Unlike business contract hire, it is the individual, not the company, who chooses the finance company and contract terms, and who pays the fixed monthly instalments.


Can drivers use their personal vehicle for business purposes?

Yes, but the driver's employer still has corporate responsibilities.

When drivers use a privately owned or privately leased vehicle (like Personal contact hire) for a business journey it is known as a grey fleet vehicle.


As an employer, what are my responsibilities for grey fleet vehicles?

Employers can uphold their duty of care obligations for grey fleet vehicles with various risk management strategies including regular driving licence checks, eye tests, insurance checks, driver training and policy declarations.

how personal contract hire affects company car fleets

your obligations


Find out about risk management and how it relates to duty of care.