A complete guide on BCH Leasing and how it works at Clear Car Leasing


Business Contract Hire (BCH) is a popular choice with companies and works in a very similar way to Personal Contract Hire (PCH), however it is exclusive to businesses.

Your BCH agreement will be based around what vehicle or fleet you decide to lease, the length of lease chosen and the agreed mileage allowance, with a fixed monthly amount to pay up until the end of your lease period.

One thing that is different with a BCH agreement, is that you can claim back some or all of the VAT once your lease term comes to an end. If you use your lease car or van solely for business use only, you can claim back 100% of the VAT, otherwise you can reclaim 50% of the VAT at the end of your lease contract.

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BCH Leasing is the perfect choice for your company if you’re looking to lease a brand new car/van or fleet of vehicles.

Your business lease will also include UK road tax, manufacturer warranty, breakdown cover (subject to warranty), free delivery & collection.

Just like a PCH agreement, you have the option of adding a maintenance package to your business lease contract for peace of mind which includes servicing, tyres and general fair wear & tear cover.

When you lease rather than purchasing outright, the monthly repayments tend to work out much cheaper and mixed with the fact that as a business you can claim back some or all of the VAT if you’re VAT registered, it makes perfect business sense to lease rather than buy.

One thing to be aware of, is that if you exceed your agreed mileage allowance, you might have to pay excess mileage fees at the end of your lease contract – you’ll have to pay a small fixed charge for every mile over.

So, is Business Contract Hire (BCH) right for you? If you’re a sole trader, limited company, partnership or self-employed, a BCH agreement could be the perfect choice for you and the best way of providing you, your company and members of staff with a brand new car or van.



To find out more about our car & van leasing services for both Business and Personal customers, please call 01904 55 75 44 or email: sales@clearcarleasing.co.uk

Simply fill in our ‘Quick Quote’ form for a no obligation quotation or chat with us NOW using our online ‘We Are Here!’ service.

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