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29th Jun 2017 - Give our team of Leasing Consultants a call on 01442 920 920 for a tailored quote !

Business Contract Hire

Business Contract Hire (also known as BCH) is a fixed term contract where businesses pay an agreed monthly rental for the use of a new vehicle for a set period. It benefits businesses wanting to eliminate the financial risk and outlay associated with buying, owning and then disposing of a vehicle.

You will need to work out how many miles a year the vehicle will be driving before you decide on your contract and the vehicle will need to be returned in accordance with the finance company’s ‘Fair Wear and Tear Guide.’ A copy of which will be made available at the beginning of the lease.

Always speak with your accountant before deciding on the best form of fleet funding for your company as they will be able to advise on any tax implications. If you are an employee and will be leasing a vehicle in your own name, we can also provide you with a Personal Contract Hire quotation and advise on the key differences.

Benefits of Contract Hire:

•Fixed term and fixed monthly budgeting
•Initial rental is adjustable to suit most budgets
•Contracts available from 5,000 to 40,000 miles a year, to match your business’s requirements
•No depreciation or disposal risk, the vehicle is simply handed back at the end of the term
•Optional maintenance saves you the cost of services, worn tyres and other maintenance
•Road fund is included for the full term
•A proportion of the VAT element of the monthly rental can normally be claimed back

Contract Hire may not be suitable if:

•You might need to end the agreement early, as early termination can be expensive
•You cannot predict your annual mileage
•You cannot look after the vehicle and return it in a well maintained condition
•You will not have fully comprehensive insurance
•You are planning to use the vehicle as a taxi, chauffeur or driving instructor vehicle
•You want to own or have the option to buy the vehicle

To discuss leasing in more detail, call Lease Comparison now on 0800 009 6808.

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