Business Car Leasing

Business Contract Hire simply explained

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Guide to Vehicle Leasing

New to leasing? This guide has been created to offer you impartial information and helpful advice about leasing a vehicle.

With over 36 years of experience providing lease vehicles to business and private individuals, we can offer you the most comprehensive information and knowledge. If you have any further questions or topics you wish to discuss, contact one of our leasing consultants

What is business car leasing?

Business car leasing, and specifically business contract hire, is an extremely popular way of hiring company cars. This is due to the many benefits it offers to business owners.

We have broken down these benefits for you below, and then summarised the different forms of business car leasing including the most common form, business contract hire.

What are the benefits of business car leasing?

Over half of all company cars are financed as a business car lease. This is due to the several benefits to a leasing offers that make it an attractive option:

  • Outlay

    Low initial outlay

    The inital outlay required to lease a vehicle is less than a car loan or buying outright, starting from only three monthly payments, keeping expenditure low.

  • Cashflow

    Improved cash flow, avoid depreciation

    The total cost of a lease is often cheaper than the finance payments on a car loan or buying a vehicle outright. This allows your business to have improved cash flow.

  • VAT

    VAT benefits for your business

    50% of your monthly rental figure is tax reclaimable. If you take out a contract out with maintenance, 100% of the maintenace figure can be reclaimed.

  • Maintenance

    Option to include maintenance

    For added peace of mind all lease contracts have the option to include maintenance for an additional monthly fee, for a complete hassle free service.

  • Road Fund

    Road fund licence

    Road fund licence is included in all business contract hire contracts, and for the first year in an operating lease. Saving your business even more.

  • Warranty 2

    Full manufacturers warranty

    All lease cars come with a full manufacturers warranty that will, in most cases, cover the term of your contract, allowing you to focus on more important business.

Is business contract hire suitable for me?

Business contract hire may not be suitable if you wish to own or buy the vehicle or change your vehicle as this will result in early settlement charges. Please note you also would not be able to shorten the period of hire by making early repayments.

If you do not know what your predicted mileage will be, if you plan to use the vehicle abroad for any extended periods or if you are looking to use it for specific business such as a taxi, then leasing may not be suitable for you.