Business contract hire (BCH) is a sought-after long-term vehicle rental agreement suitable for sole traders, partnerships and limited companies. The vehicle is simply rented over a number a set number of years (typically 2 to 4 years) for affordable monthly payments.
At the end of the contract, the vehicle is returned to the financial provider, freeing your business from the hassle of trying to sell the vehicle at a heavily reduced rate.
The concept of Business Contract Hire with Fleet UK is simple:
The monthly hire payments are calculated based on the following:
Applying for finance as a business is slightly different from the personal lease process as there are different requirements that need to be met.
Every funder has its own requirements for business applications. Generally, you need to have been trading for 2 years and filed at least one set of accounts showing a positive net worth.
If no accounts have been filed and you are a new start company, some funders such as (but not limited to) Audi, Volkswagen, Skoda, Seat and, Mercedes will still accept an application with a supporting Directors personal guarantee.
If a company has filed only one set of accounts, Fleet UK recommends supplying the latest management accounts and three months business bank statements to support the application.
Sole Trader finance applications work slightly differently as the funder will carry out a personal credit check, which strictly speaking is the same if someone was making a personal application.
There are many benefits to leasing a vehicle as opposed to buying one for sole traders. The affordable and fixed monthly payments make it easier for you to budget and manage your cash flow.
You get to decide the length of the contract and the annual mileage which suits your requirements. You can decide if you want to pay an initial deposit amount or a larger one to reduce the following monthly payments.
A business car leasing deal includes road tax, manufacturer’s warranty, and free UK delivery to your door. You can add maintenance packages to your contract for an additional fee. This provides coverage as well as giving you peace of mind on minor damage, servicing, minor dents, or scuff.
Also, roadside assistance cover is provided by the car manufacturer, for a period between 12 months to 4 years depending on the vehicle brand.
More employers are offering employees the choice between a company car and a car allowance, which is paid into your salary and yours to spend how you see fit.
It’s wise to take some time to decide which is the best option for you, but if you choose to use the money for a lease car, you need to sign up for a personal contract hire deal, not a business one.
You will not have to pay Benefit In Kind on the vehicle as you would do with a company car, but you will have to pay VAT.
It’s common for a lot of vehicles to lose around 50 to 60% of their value during the first three years. By leasing the vehicle the risk is taken on by the vehicle funder.
Don’t want the hassle, worry, and cost of trying to sell your vehicle privately? Leasing the vehicle allows you to hand back the keys and take out a new lease.
As most leases last between 24 to 48 months your employees can drive new cars or vans fitted with the latest safety and in-car technology.
100% of VAT is recoverable if the vehicle is used only for business purposes, or 50% if the car is sometimes used for private use.
All new or nearly new vehicles come with a manufacturers’ warranty, which in most cases will cover the length of your lease giving you peace of mind.
This is covered for the duration of the contract
Breakdown cover is provided and can last between 12 months to 4 years depending on the vehicle brand. You can also take out optional maintenance cover to give you reassurance on minor scuffs, damage and servicing.
Please visit our 'Business Car Leasing Tax Advantages Guide' for information such as:
At the end of the contract, the vehicle is handed to BCA Limited (British Car Auctions Limited) which means you’re free to lease another new vehicle without any outstanding financial obligation.
If you have exceeded the agreed annual mileage allowance there will be an excess mileage charge applied, which is typically worked out at a ‘pence-per-mile’ basis. Also, when returning your vehicle, it will be assessed by the BCA who will use the BVRLA’s Fair Wear and Tear guidelines. Damage which falls outside of these guidelines may be subject to penalty charges.
For more detailed information as to what happens at the end of contract, please visit our 'End of Contract Guide'.
Option 1 – Request a quote
You can request a quote via here and we will search for the best leasing deals available based on your requirements. We will get back to you in the same day.
Option 2 – Search for deals on our website
Check our special offers or use the quick finder tool on our homepage. There’s also an advanced search to help you pin down the right leasing deal for you.
Option 3 – Call us
If you would prefer to speak to someone straight away, no problem at all, just give us a call on
02392 245572 and you will have a dedicated account manager who will be on hand to give you any help and advice.
At Fleet UK, we’re specialists in supplying new or nearly-new vehicles for reasonable rates. Whether you’re a sole trader or a big business looking for a fleet of vehicles, we’ll provide you with a dedicated account manager who will find the right solution for you.
If you have any questions please call us on 02392 245572 and we will be glad to assist you.
Email : firstname.lastname@example.org
Telephone : 02392 245570
Company Address :
7 Stratfield Park
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Registered Office : 7 Stratfield Park, Elettra Avenue, Waterlooville, Hampshire PO7 7XN
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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