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


If you’ve recently set up your own small business and would like to lease a brand new car, you might be unsure whether to go through your business or take out a Personal Contract Hire (PCH) agreement.

The differences between personal and business car leasing contracts mainly surround the taxation implications, with a business lease there’s potentially more benefits, especially if you’re VAT registered, however you can still lease a car without being VAT registered.

As you’re a new business, you might be asked for a larger initial payment and will also have to provide proof of address, ID for the main company directors and bank statements/audited accounts.

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

Should A Start Up Lease A Car Personally Or Through The Business?


Unfortunately, some finance houses like to see at least three year’s worth of trading history and accounts before making their decision and this could be an issue for a new start up.

Luckily, there’s a personal lease option available if this is the case, giving your business time to grow.

The best advice for a new start up is to lease something that’s affordable, possibly looking at a car that’s lower in emissions and potentially a lower tax band – your business is in its early stages, so stretching yourself because you have your eye on a fancier, more expensive car could be risky.

By the time your personal lease contract comes to an end, the business will hopefully have grown and at this stage you can then look at leasing the car you really want through your business.


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

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