Leasing a car through your business is a straightforward and hassle-free procedure
When you lease through Business Contract Hire (BCH) you basically get to drive a brand new car for an agreed period of time, paying a low monthly fixed amount for the duration of the lease term.
You also have the option of whether to include a maintenance package, plus you will have to decide what mileage allowance will be right for your particular needs.
To be eligible for a BCH you must be either a sole trader, a partnership, limited company or a public limited company (PLC) and will be required to provide bank statements, proof of ID and proof of address. You should also make sure before you apply that you have a good credit rating.
Leasing through a BCH gives you access to a brand new car without the worry of depreciation associated with buying outright or having to sell the car.
There’s also VAT benefits too – you can claim back 50% of your VAT on contract hire payments and if you opt for a maintenance package, you can claim back 100% of its VAT.
You might never actually own the car but it’s yours to enjoy for the duration of the lease term you decide to opt for and when the contract comes to an end, you can either extend the lease agreement for the same vehicle/s or you simply return the car/s in a satisfactory condition under the BVRLA ‘Fair wear & tear’ guidelines.
Failure to comply with these guidelines could see you having to pay extra charges at the end of your lease agreement. The same applies if you exceed your agreed mileage allowance, so it’s important that you accurately predict how many miles will be covered on an annual basis.
It’s important to remember that if you opt for say 15,000 miles per annum but only cover 10,000 miles a year, you won’t be entitled to a refund.
Please click here to find out more about our car leasing services and special offers, or call us today on 0844 846 4007.