Business Car Leasing Deals

How Does Business Car Leasing Work?

Business Car Leasing, commonly referred to as Contract Hire or BCH, is available to business owners and employees

With business car leasing you simply pay an agreed monthly amount for a brand new vehicle - the monthly cost is based on the amount of time (typically 2 years to 4 years) you require the vehicle for, the mileage you'll cover within that time and the initial rental amount you are prepared to pay upfront.

You can learn more about how car leasing works for businesses on our leasing guide.

What are the benefits of a Business Car Lease?

Leasing a car through your business is a cheap and hassle-free way to get on the road and offers the following benefits:

• Low monthly repayments
• Flexible terms from 24 to 60 months
• Option to extend the lease period at the end of the contract
• Return vehicle at end of contract and start a new agreement on a new vehicle 
• No hassle with selling the car or losing money on the car’s value
• Better Cash Flow Management - Your business is only paying for the depreciation of the vehicle over the length of your lease contract. This frees up more cash for your business to spend on development and growth.
• Repayments can be claimed as a company expense - If the cars you lease emit equal to or less than 130g/km of CO2, you can claim back 100% of the rental payments against tax. If the CO2 emissions exceed this, you can claim back rentals against tax, but only at 85%.
• VAT Benefits - 50% of your VAT on contract hire payments can be claimed back and 100% of VAT on a maintenance package can be reclaimed.
• The leasing company handles all administration of the vehicle throughout your contract which eliminates the need for businesses to spend valuable resources doing this in-house.
• Leased cars are not counted as assets. Therefore your company’s balance sheet will show an immediate improvement in the “rate of return” on capital employed (via the asset value of the balance sheet being reduced).

Are There Any Risks With A Business Car Lease?

The risks involved mainly revolve around poor care of the vehicle or relate to breaks or breaches of the business contract hire agreement.

• If the vehicle is returned with damage that goes beyond established industry guidelines – known as BVRLA Fair Wear and Tear you may incur charges to repair that damage.
• If you terminate the lease early, you may be liable to pay an early termination fee
• If you have driven the vehicle beyond the agreed mileage limit, you will be charged an excess mileage rate which is outlined in your agreement.

What are the different types of Business Contract Hire?

There are two types: Non-regulated (limited companies) and regulated (partnerships and sole traders)

The main difference between these is that regulated agreements are subject to the Consumer Credit Act 1974 (CCA), which gives consumers certain rights and protections. These include:

• The right to receive clear and accurate information about the agreement before you sign it.
• The right to cancel the agreement within 14 days of signing it.
• The right to be treated fairly by the lender.
• The right to complain to the Financial Conduct Authority (FCA) if you have a problem with the agreement.

Unregulated agreements are not subject to the CCA, so they do not offer the same level of protection to consumers. This means that you may not be able to cancel the agreement within 14 days, or you may not be able to complain to the FCA if you have a problem.

What's Included In A Business Car Lease?

Business Car Leasing Is Very Similar to Personal Leasing

Your lease will include: Road tax, a fully bespoke contract, term and mileage - which is discussed, developed and tailored to your individual needs. It will also include a tailored payment plan, comprehensive vehicle maintenance (if selected) and the quotation can be based on net rental, effective rental and whole life cost.

Am I Eligible For A Business Lease?

There are certain criteria points which need to be met in order to qualify for a business car lease contract:

• You must be a sole trader, partnership, Ltd or PLC
• You must be able to provide bank statements and/or audited accounts
• You need to produce proof of address and proof of ID for the main company director
• You should have a good credit rating (each application uses different criteria so we can't advise on specifics with regards to credit ratings)

How Do I Get Started?

Simply choose the car that you want to lease, enquire and then our leasing specialists will guide you through the business leasing process

Check our business lease special offers above to find the cheapest lease vehicles we have on offer or you can use our advanced search filters to find specific models. Once you've found the perfect car, you can customise your terms and then send us an enquiry. We will then contact you to finalise your deal. It's that simple.