Business Car Leasing
Business car leasing is an attractive way to acquire a brand new company car of fleet of vehicles for fixed monthly rentals. Our team of contract hire experts are on hand to help your business make the best decision. With a choice of in stock lease cars or factory order special offers to choose from, you can find the best car for your company. We also offer fantastic offers on personal car lease deals for you to choose from.
What are the Benefits of Business Car Leasing?
Fixed Monthly Costs
When you sign up to a business lease agreement, there are no hidden costs. With flexible mileage terms and contract lengths to suit your business requirements
VAT Benefits
If your business is VAT registered, you are able to claim up to 100% of the VAT on business use or up to 50% back on business and personal use.
Maintenance
Cover yourself and your employees for routine servicing, MOTs and perishable items. Our maintained agreement gives you the peace of mind that your employees are covered for one fixed cost.
Tax Benefits
When leasing a vehicle with lower CO2 emissions, cars that fall into a cheaper tax band attract lower benefit-in-kind rates.
What is Business Car Leasing?
Business car leasing, also known as business Contract Hire (BCH) is a type of car leasing agreement that is becoming increasingly popular among businesses. With BCH, a business leases a vehicle from for a set period, typically between two to four years, and pays a fixed monthly fee for the vehicle's use.
BCH is attractive to businesses because it provides a cost-effective way to acquire and maintain vehicles without having to purchase them outright or finance them. The fixed monthly payments of a BCH agreement are often lower than the costs associated with ownership, which allows businesses to manage their cash flow more effectively.
Additionally, BCH agreements typically include road tax, and breakdown cover, which helps businesses reduce the costs and risks associated with managing a vehicle fleet.
Businesses can also opt into a maintenance package that will cover all routine servicing and MOT. Optional maintenance packages typically also include replacement tyres, as well as perishable items such as light bulbs and wiper blades. Your sales representative will be able to confirm exactly what is included in your agreement as it depends on which finance provider your agreement is with.
Business Leasing Limitations
It is important for businesses to carefully consider the terms of the BCH agreement before entering a lease. For example, businesses will be charged for any excess mileage or excessive damage, outside of fair wear and tear, to the vehicle when it is returned at the end of the lease period. Additionally, businesses will need to commit to the lease period, which means that they may be charged a fee if they want to end the agreement early.
In summary, Business Contract Hire (BCH) is an attractive option for businesses looking to manage their vehicle fleets in a cost-effective and flexible manner. BCH provides a way to acquire and maintain vehicles without tying up capital and enables businesses to upgrade their vehicle fleets regularly. However, businesses should carefully review the terms and conditions of BCH agreements before entering a lease to avoid unexpected costs or fees.
Business Leasing FAQs
Business car leasing refers to a financial arrangement where a business or company leases a vehicle for a specific period, typically between 2 to 5 years, by paying monthly lease payments. The business does not own the vehicle but has the right to use it during the lease term.
Business car leasing offers several advantages. Firstly, it allows businesses to acquire vehicles without a large upfront investment, as the initial payment is typically lower than purchasing a vehicle outright.
Leasing also provides flexibility, as businesses can easily upgrade their vehicles at the end of the lease term. Additionally, the lease payments can be tax-deductible, and businesses can benefit from fixed monthly costs and better cash flow management.
While business car leasing has its benefits, there are also some potential drawbacks. One major consideration is that businesses do not own the vehicle at the end of the lease term, and they may need to return it or enter into a new lease agreement.
Additionally, there may be mileage restrictions and wear-and-tear guidelines that businesses must adhere to. It is important to carefully read and understand the lease agreement to avoid any unexpected costs or limitations. We are happy to help advise what mileage you may require and assist you when your lease is due to be renewed.
In most cases, leased vehicles need to be returned in their original condition at the end of the lease term. Therefore, significant modifications or customisations to the vehicle may not be allowed. However, minor alterations such as adding decals or wraps for branding purposes may be permitted.
It is advisable to consult with the finance company beforehand to understand their specific policies regarding vehicle customisation.
Yes, businesses can lease multiple vehicles based on their requirements. We offer fleet management services to cater to businesses needing multiple vehicles.
The terms and conditions for leasing multiple vehicles may vary, so it is recommended to discuss your needs with our team to find the best solution for your business.
