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What is Business Contract Hire?
Dick Lovett's Business Contract Hire Car Deals
Business Contract Hire (BCH) is a type of car finance for businesses and companies.
If you’re a business owner looking for a car for yourself, for work purposes, or to provide company cars for employees who are required to travel as part of their job, Business Contract Hire can be an affordable way to lease cars.
There are no real restrictions on the size or type of business in order to qualify for Business Contract Hire – you can be a fleet manager needing cars for ten employees or a sole trader who needs a car to get around.
It can be a good option if you want a new car without the financial investment and commitment of buying one outright.
At Dick Lovett, we offer Business Contract Car Hire deals across most of our brands, including: Aston Martin, BMW, BMW Motorrad, MINI, Jaguar, Land Rover, Porsche and Ferrari. Contact us to ask about Business Contract Hire deals.
Business Contract Hire Car Finance
How does Business Contract Hire Car Finance work?
Business Contract Hire works in much the same way as Hire Purchase, but it’s not available to people who apply for it on a personal basis.
The car needs to be used in connection with a business, though it can also be used as a private vehicle, as company cars often are, too.
With BCH, a business takes out a long-term finance agreement to effectively lease or rent a car. The length of the agreement is to be agreed, but typically ranges from 24 months – two years – up to 60 months. Depending on the needs of the business, you may decide to opt for a 24 month term if you intend to change cars every couple of years, switching for a new model.
The business pays a fixed rental cost every month for the duration of the agreement, and must maintain those payments.
There will be other conditions attached to the terms of the Business Contract Hire plan, such as an agreed annual mileage limit.
Think about what the car will be used for, and calculate its estimated mileage every year; if you exceed the mileage limit, it’s likely the business will have to pay for the extra miles, at the end of the agreement.
The benefit for businesses who finance a car this way include low monthly payments due to the fact that 50% of the VAT can be reclaimed against the cost. If a business leases a van on Business Contract Hire, 100% of the VAT can be claimed back.
And, with cars or vans, 100% of VAT on any maintenance costs – servicing, for example – can also be claimed back.
Business Contract Hire Agreement
Steps for a Business Contract Hire Agreement
Leasing a car on Business Contract Hire with Dick Lovett is simple. Just follow these steps:
1. Choose the make and model of car your business needs. You can view our range of new cars online, or across our many dealerships in the South West and Wales.
Business Contract Hire deals
What happens at the end of the Business Contract Hire deal?
There is no option to buy a car that’s leased on a Business Contract Hire plan, so at the end of the agreement, just return the vehicle to the dealership.
Provided there are no excess costs to pay – there might be some financial adjustment if the business has exceeded the agreed mileage limits – there’s nothing more to do.
With the car returned, the business is free to find another vehicle to lease by Business Contract Car Hire, if it chooses.
Click here to explore business car leasing offers available at Dick Lovett.
Alternatively, if you’re looking to provide all of your employees with the opportunity to lease a brand-new car at the best price, a salary sacrifice car scheme could be worth considering.
Why lease with Dick Lovett
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First class customer care
Over 50 years experience
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