What Is A Business Lease?
Business car leasing is the hassle-free way for you or your company to gain access to a new car without having to legally own it. You can lease the perfect car or van for your business through a Business Contract Hire (BCH) agreement with Flexed.
Basically, this type of contract allows you to lease a car or van for your business over as many months as you require, eventually returning the vehicle back to us.
So, how does BCH work? Here’s our quick guide to Business Contract Hire and everything you need to know before getting started.
What Is Business Car Leasing?
Business Contract Hire (BCH) is similar and works in pretty much the same way as Personal Contract Hire (PCH). The main difference between the two, is that with Business Leasing, your company is leasing the car or van for business use, whereas with a PCH agreement the lease vehicle is used solely for personal use.
With a BCH contract, your company will never own the car or van you lease. You basically agree to drive it for the duration of the contract, knowing that it remains the property of the leasing company and must be returned once the agreed lease period ends.
Opting for a BCH deal frees your company from the financial risks involved with owning a car or van or fleet of vehicles. A brand new car can lose almost half of its overall value within its first year, so it makes perfect sense to lease rather than buy outright – no depreciation to worry about or having to deal with selling the vehicle on when the time comes.
A BCH agreement provides access to some of the latest and greatest high-spec models on the market today. All of our lease vehicles are less than 12 months old, with 90% being less than 6 months old, so you know that the vehicle/s you choose to lease are new and maintained regularly ensuring they’re safe and ready to lease, plus we change our entire fleet every six months so that our customers always have the latest models to choose from.
Business car leasing is not just exclusive to Limited and Public Limited Companies (PLC). If you’re a partnership, self-employed or a sole trader, you may also qualify for a business lease agreement.
What You Can Claim Back With BCH
With a BCH contract, there’s also extra benefits to take advantage of that don’t apply to PCH contracts, such as the fact that you can claim back chunks of tax – that’s why leasing is growing in popularity amongst business owner’s!
You can claim back the cost of your monthly payments as a business expense, however the full amount you claim back all depends on the CO2 emissions of the vehicle you’ve chosen to lease. To find out more, please click here.
If you use the car or van purely for business use only, you can claim back 100% of the VAT. If however, the vehicle is used in a personal capacity as well as for business use, you should only expect to be able to claim back 50% of the VAT.
Also, if a maintenance package is not part of the lease deal, you can claim 100% of the VAT back for a maintenance package that you’ve added to your lease contract.
To find out more about our car leasing services and fantastic offers, please click here or give us a call TODAY on 0800 311 8290.
Drop us a quick email to email@example.com or chat with a member of our team NOW using our online ‘We Are Here!’ service – we’ll gladly answer any leasing questions you may have.