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Business Car Leasing & Contract Hire

Car Leasing is one of the fastest-growing markets in the UK and for several years has been an excellent way for businesses to fund their fleet while not needed to shell out the full cost of a vehicle.

If you’re looking at leasing a car through a business, or you work for a business that is offering you a company vehicle, then leasing is one of the best choices available to you.

Business Contract Hire Explained

Business Contract Hire, usually abbreviated to ‘BCH’, is a form of business car leasing that is designed to operate in a way where a vehicle lease agreement is tied to a sole trader, partnerships and limited companies as a financial asset, rather than linked to an individual.

Contract Hire works like a long-term rental agreement. You simply rent a vehicle over a set number of years (measured in months – i.e. 18, 24, 36, 48 etc.) and then the vehicle is collected at the end, freeing you and your business from having to administrate the ownership of a vehicle and subsequently sell it at a heavily reduced rate compared to what you would have spent on it when brand new (depreciated value).

The concept is simple enough:

  • You choose a brand new vehicle that you want and is suitable for your business.
  • You can add some fun and functional options to it.
  • We then order that vehicle through a franchised dealership.
  • A Finance Company (a.k.a. Funder) then buys that vehicle.
  • You are then in agreement with the Funder, paying a  fixed payment each month.
  • The Funder then collects the vehicle at the end of your contract hire term.

NB: There are minor variations and additions to this process if you are looking at procuring and managing a large fleet of vehicles for your business. Our Fleet Management specialists will be happy to discuss this with you personally.

Popular Business Car Leasing Questions


What are the benefits of Business Contract Hire?

A fully-fledged professional such as yourself will potentially know a lot of this already and/or will have probably had a thrilling conversation with your bookkeeper about the matter. However, we are all about inclusivity here, so I need to ensure that everyone is on the same page. Therefore, here are some reasons to consider why leasing may be good for you and your business:

  • You get to regularly use a brand new factory fresh car – having a more economical and reliable vehicle
  • Fixed monthly payments – making it easier to account for
  • Road Tax included – for the duration of the contract
  • You can have the maintenance covered – with an optional maintenance package that covers the cost of servicing, general maintenance and replacement tyres (subject to the level of cover and provider’s T&Cs)
  • No ownership of a depreciating asset – alleviating the risk of your company losing £1,000s in depreciation
  • Full manufacturer’s warranty
  • Free delivery to any mainland UK address – no need to travel to a dealership, it comes right to your door! (Unless your door is above ground floor… cars don’t hover yet)
  • Your business can reclaim the tax – if your business is VAT registered, then you can reclaim 50% of the VAT (or 100% for commercial use vans!)
  • You can get a better vehicle for less money – This sometimes happens because the rentals are affected by the residual value of the car, not just the purchase price

Can my business lease a car?

As with all financial credit agreements, your business will need to meet eligibility criteria and be subjected to a credit check by the finance company that will be the funder of the lease.

Can the self employed get a business car lease?

Yes they can, the regulations for a self employed person compared to a limited company are different, but the process is exactly the same. You can check out our guide to leasing as a sole trader for more information.

What should I know about a Business Contract Hire agreement?

You should always think about whether a financial product is appropriate and beneficial for your business, by looking at its drawbacks.

With a Business Contract Hire agreement, some points to consider would be:

  • You will not own the car. The legal owner of the vehicle will be the Funder, who you will make your monthly finance payments to. Your business will, however, be the registered keeper
  • You must have fully comprehensive insurance. You are responsible for this and must have an appropriate insurance policy in place, for the correct use, for the duration of the lease agreement
  • Terminating the contract early can be expensive. An 'Early Termination' will incur a fee from the Funder, which is usually equal to between 50-100% of the remaining monthly payments
  • You are limited on your mileage. When you take out your contract, you will agree to a contract mileage allowance (this is divided out into annual amounts for pricing purposes). If you go over this contracted allowance, you will be charged an over-miles charge – which is expressed in your contract as “pence-per-mile” – as a lump sum at the end of your contract

What do I need for a business car lease?

So if you're a business looking to take on lease vehicles, we will need to take you through the application process to get the business a line of credit. To do this we will need as much information as possible, ideally your business has been opporating for at least two years and has filed accounts at companies house, but we can still see if we can help if under two years.  

If you're an employee, then you will need your manager/director to give us approval and the above information and we can work from there. More information can be found on our business leasing guides page

Our Chosen Business Car Leasing Deals

Why Choose Car Lease Special Offers?

Its a good question, what makes us different? Why trusts us? Who are we?

Well, Car Lease Special Offers is a trading name of Wessex Fleet Solutions, a fleet management and leasing company that have been operating throughout the UK since 2004. We've built great relationships with dealers, manufacturers and funding houses that allows us to find you the very best and cheap lease deals available in the UK.

We have almost a thounsand 5 star reviews on trustpilot from our customers that have received a lease car through us and we hope to add you to that long list of happy customers.  


Electric Car Business Leasing

Getting your hands on the latest technology including Electric and Hybrid cars couldn't be easier as the process for an electric car is exactly the same as it is for tradional petrol or diesel engine car.

Our sales team are on hand to help with any questions you might have surrounding electric vehicles, but we also have a number of Electric Leasing Guides that can answer your questions.

If you require any further information about Business Contract Hire, Personal Contract Hire or would like to know about our current leasing Special Offers, please call us on 0330 221 000 or email us at sales@carleasespecialoffers.co.uk.

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