personal contract hire, as its name suggests, is essentially the same as contract hire but for private individuals. if you want fixed cost motoring, or have opted out of a company car scheme then personal contract hire could provide you with hassle free motoring without the residual value risks associated with traditional ownership.

vat is built into the monthly payments, but is not reclaimable by private individuals. maintenance packages are usually available so that you don't get any nasty surprises.