Business Contract Hire (BCH) is the method that businesses can finance their vehicles with a small down payment and an agreed mileage for the term of a contract. The minimum payment on business contract hire is usually 3 payments in advance sometimes this can be as low as £99 or as high as 12 payments upfront depending on the deal taken out.Deals are normally calculated over a 2,3 or 4 year periods these deals would be advertised as 3+23 or 3+35 contracts, this works with 3 payments in advance then 23 payments or 35 payments over the rest of the term.car lease deals
Mileage allowance is agreed at the start of the contract, the minimum is normally 5,000 miles per annum and maximum is normally 40,000 per annum. Mileage over and above the agreed amount is charged at an excess mileage rate. This rate will be billed at the end of the contract. (typically between 4 and 10 pence per mile) personal car leasing
Business Contract Hire is subject to Vat of which 50% can often be reclaimed. When the contract ends the car is returned to the finance company. The vehicle is then inspected, please note any damage must be repaired prior to return, or this will be charged in addition to the contract.
We recommend businesses consult their accountant to explain in full the benefits of Business Contract Hire (BCH).
Personal Car LeasingPersonal Contract Hire (PCH) is very similar to business contract hire with the exception of being able to reclaim the VAT.
Personal contract hire prices are normally displayed including VAT, the deals on personal car leasing work along the same format as business contract hire with a 3 payments upfront as a typical deposit, then monthly paymenys over the remaining term.
Mileage is again agreed prior to the contract start and will be normally be between 5,000 and 40,000 miles per annum. An excess mileage will be charged for any mileage over and above the agreed limit, this will be billed at the end of the contract.
Personal Contract Hire is not PCP which is a different type of agreement although very similar. With a PCP you have an option to purchase the car at the end of the contract.
Personal Contract Hire denotes that you must return the car back to the finance company at the end of the agreed contract. Any damage must be repaired or will be charged in addition to the contract.
Mileage allowance is agreed at the start of the contract, the minimum is normally 5,000 miles per annum and maximum is normally 40,000 per annum. Mileage over and above the agreed amount is charged at an excess mileage rate. This rate will be billed at the end of the contract. (typically between 4 and 10 pence per mile) personal car leasing
Business Contract Hire is subject to Vat of which 50% can often be reclaimed. When the contract ends the car is returned to the finance company. The vehicle is then inspected, please note any damage must be repaired prior to return, or this will be charged in addition to the contract.
We recommend businesses consult their accountant to explain in full the benefits of Business Contract Hire (BCH).
Personal Car LeasingPersonal Contract Hire (PCH) is very similar to business contract hire with the exception of being able to reclaim the VAT.
Personal contract hire prices are normally displayed including VAT, the deals on personal car leasing work along the same format as business contract hire with a 3 payments upfront as a typical deposit, then monthly paymenys over the remaining term.
Mileage is again agreed prior to the contract start and will be normally be between 5,000 and 40,000 miles per annum. An excess mileage will be charged for any mileage over and above the agreed limit, this will be billed at the end of the contract.
Personal Contract Hire is not PCP which is a different type of agreement although very similar. With a PCP you have an option to purchase the car at the end of the contract.
Personal Contract Hire denotes that you must return the car back to the finance company at the end of the agreed contract. Any damage must be repaired or will be charged in addition to the contract.
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