The true cost
Car Leasing Calculator: PCH Monthly Cost
Estimate the monthly cost of leasing a car on PCH and what you'll pay overall — you never own the car.
Monthly rental
£280.00
Total amount payable
£12,320
you never own the car
What the lease costs
- Initial rental
- £2,520
- Contract length
- 3 years
Leasing (PCH) is long-term rental — there's no balloon and no option to buy, and no voluntary-termination right. You hand the car back at the end.
How we work this out
A UK lease is quoted as an initial rental (a multiple of the monthly) plus a number of monthly rentals — e.g. a '9+35' deal. Total = monthly × (initial months + contract months − 1).
Leasing has no balloon, no option to buy, and no voluntary-termination right.
Full method: how we calculate.
Car leasing (PCH) is long-term rental: you pay a monthly fee to use a car for a fixed term, then hand it back. This calculator estimates the monthly rental and the total amount payable across the contract.
What is car leasing (PCH)?
Car leasing, or Personal Contract Hire, is a long-term rental where you pay a monthly rental to drive a car for 2 to 4 years, then return it. You never own it.
Unlike PCP, there's no balloon and no option to buy at the end — the car always goes back. That makes the maths simpler but the trade-off plain: you're paying to use the car, not to own it.
How does leasing work?
You pay an initial rental up front, then fixed monthly rentals for the term, within an agreed annual mileage.
Go over the mileage and you pay an excess charge per mile. A £280 monthly rental on a 9+35 deal (nine months up front) totals about £12,320 across the contract, with a £2,520 initial rental.
Leasing vs PCP: which suits you?
Leasing suits drivers who want a fixed budget and a new car every few years; PCP suits those who might want to own it.
If owning matters, compare with PCP or a personal loan.
| Leasing (PCH) | PCP | |
|---|---|---|
| Own it? | Never | Optional (pay the balloon) |
| Balloon? | No | Yes (GMFV) |
| VT right? | No | Yes (after 50%) |
| Best for | Fixed budget, new car often | Flexibility to own |
Can you buy the car at the end?
No — with a standard PCH lease you can't buy the car; it goes back to the leasing company. If owning is the goal, PCP, HP or a loan is the route.
Because you never own it, there's also no voluntary termination right and no equity to part-exchange. Want to own from day one? See the car loan calculator.
Frequently asked
What is car leasing (PCH)?
Is leasing cheaper than PCP?
Can you buy the car at the end of a lease?
What happens if you go over the mileage on a lease?
Work out your next step
Independent calculators — pick the one that fits your situation.