So you’re looking for a new car to lease, here’s a little bit about business car leasing to help you answer any questions that might be left in your head about how it works. Business contract hire is just that, a business contract to lease a car and is also referred to as BCH.
There are a few advantages of leasing through a business. Firstly there is obviously less risk to an individual as it’s all done through the business. This is checked against the business accounts so having a good idea of your credit on those accounts will give you an indication on if you will get approved on a business lease or not.
There are advantages to leasing a car through the business as the rental payments are seen as a business expense, which can be offset against corporation tax. If you are to take out a maintenance contract as well all of the VAT paid on that is also reclaimable.
As for how it actually works, you only have to get credit approved with us initially, through the business accounts. Then when you place an order on the car you will need to pay a deposit to us as a financial commitment to the contract. Once the order has been placed you will be sent documents for you to fill out and return so that the contract is in place. After that your car will be set for its delivery date and the next action will be to pay the initial payment to the financing company.
The initial payment is 3, 6 or 9 times the monthly amount, this will be due anything from a day before the delivery of the car to 14 days after delivery. Once you have received your car and paid the initial payment you will only have the month payments left for the duration of the contract to think about and servicing.
About servicing, it all depends on the length of your contract. Obviously it’s a brand new car so you don’t have to worry about the MOT of the car unless you have a four year contract. Only then will you have to have the MOT done after having the car for three years. If you also have a maintenance contract with your lease contract all the wear and tear on the car and the servicing and MOT will be included within the maintenance contract. You just need to take it to your local dealership and they will sort out the rest.
If you do have any other questions with regards to leasing a car on business then do always feel free to call us, our staff here with over 30 years combined experience in the industry will happily answer your questions. We do also have a FAQ which answer a few more of the questions we get asked here on a day to day basis.
We provide a transparent service that's built on trust and care about our customers which is why you should get in touch now and lease your car with us.Call us and get a free no obligation quote today 01273 789 900.