What is business car leasing?
Business car leasing, otherwise known as business contract hire or BCH, is a low-cost way for sole traders, partnerships and limited companies to drive the car they want without the worry of ownership or resale values.
Your business can drive a better car or fleet for less through business car leasing.
1 Business Contract Hire (BCH)
Business car leasing, otherwise known as business contract hire or BCH, is available to sole traders, partnerships and limited companies.
It’s where a business pays set monthly payments over an agreed period in return for an individual vehicle or fleet. The business should always consult their accountant before making a decision to lease/contract hire a vehicle.
Leasing a vehicle means that the vehicle in question is "off balance sheet" and is not considered to be an asset to the business. Rentals are shown in the P&L, which is how VAT can be reclaimed in the quarterly VAT return. Rentals are of course charged exclusive of VAT for this reason.
The business never owns the vehicle, it’s essentially a long-term rental or lease for a fixed, pre-agreed period.
Then, when the agreement ends, you simply hand the vehicle back to your leasing provider and walk away, leaving them to worry about its disposal.
A business contract hire’s payments are usually fixed for the entirety of the contract, meaning you always know how much it’s going to cost each month and you can budget accordingly.
The monthly payments are calculated using several criteria:
- The price of the vehicle at the start of the agreement
- Any deposit you wish to make
- How long the agreement is set to last
- How many miles per year you’re expecting to cover
Find your business lease deals with Hippo Leasing
We offer a huge range of business leasing agreements, including small or no deposit options. You can view them all here.
Business Leasing Deals