Business Contract Hire (BCH) and Personal Contract Hire (PCH) at Clear Car Leasing


You could be eligible for a business lease if you apply for finance through your limited company, partnership, as a sole trader or LLP.

Sometimes, car manufacturers tempt business customers only with special rates which can result in a price difference between a business agreement compared to a personal contract.

Also, there are positive tax implications if you lease a car on a Business Contract Hire (BCH) agreement, as you can claim back a percentage of the VAT on the lease and the maintenance package too if you include this in your contract.

Business Contract Hire (BCH) and Personal Contract Hire (PCH) at Clear Car Leasing

What is the difference between business and personal leasing?


If, however, you apply for a lease car as a private individual, you might be eligible for a Personal Contract Hire (PCH) agreement.

This works in much the same way as a business contract hire agreement but you don’t have the added advantage of reclaiming the VAT, as all personal contract hire agreements include VAT in the price.

In many cases, opting for a PCH agreement might be the way to go for some businesses, especially if you’re a new business and self-employed.

Most finance providers ask to see three months business bank statements and this might not be possible if you’re a new business.

This could mean that you’re best option (for now) is personal leasing but if you’re not sure please contact us for more help and advice.

Initially, you could take out an 18 month PCH agreement and once your business has grown, you can then switch over to a BCH agreement once your personal contract comes to an end.


Please click here to find out more about our business/personal car leasing services and fantastic offers, or give us a call NOW on 01904 55 75 44.

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