Business Car Leasing

Review our latest business car leasing deals. Business Contract Hire (BCH) is a popular way of financing company cars or a fleet of cars. It's a cost-effective method suitable for many businesses who want to manage their finances optimally. Here’s why BCH might be the perfect solution for your motoring and company needs.

What is Business Contract Hire (BCH)?

Business Contract Hire (BCH), commonly known as business car leasing, is a popular vehicle leasing option tailored specifically for businesses in the UK. It allows companies to rent vehicles for a fixed period and mileage in return for monthly payments. Unlike traditional vehicle purchasing, BCH does not lead to ownership of the vehicle; instead, it offers businesses the use of a vehicle for an agreed duration, typically between two to four years.

At the end of the lease term, the vehicle is returned to the leasing company. This arrangement is particularly advantageous for businesses looking to manage their cash flow efficiently while maintaining a modern and reliable fleet of vehicles without the burdens of ownership.

The Benefits of Business Contract Hire

Cost Management and Budgeting: One of the primary benefits of BCH is the ability to manage and predict costs accurately. With BCH, businesses can avoid the significant upfront costs associated with purchasing vehicles. The fixed monthly payments allow for better budget planning and financial forecasting. Additionally, BCH agreements often include maintenance and servicing packages, further reducing unexpected expenses and ensuring the vehicle is always in optimal condition.

Tax Efficiency: BCH offers several tax advantages. Lease payments are generally tax-deductible, which means businesses can reclaim up to 100% of the VAT on the lease payments if the vehicle is used solely for business purposes. For vehicles with CO2 emissions below 130g/km, businesses can reclaim 50% of the VAT if the vehicle is used for both business and private purposes. This tax efficiency can lead to significant savings for businesses.

Improved Cash Flow: By spreading the cost of the vehicle over the lease term, businesses can preserve their working capital for other essential expenditures or investments. This improved cash flow can be particularly beneficial for small and medium-sized enterprises (SMEs) that need to allocate resources carefully to sustain growth and operations.

Access to Newer Models: BCH allows businesses to regularly update their fleet with the latest vehicle models. This ensures that employees are driving modern, reliable, and fuel-efficient cars, which can enhance the company's image and improve employee satisfaction. Additionally, newer models are often equipped with the latest safety features and technologies, contributing to overall road safety and compliance with environmental standards.

Off-Balance Sheet Financing: Leased vehicles under BCH are not recorded as assets on the company's balance sheet. This off-balance-sheet financing can improve a company's financial ratios, making it more attractive to investors and lenders. By not showing the lease as a liability, companies can maintain a healthier-looking balance sheet.

Reduced Administrative Burden: Managing a fleet of vehicles can be time-consuming and complex. BCH providers often offer comprehensive fleet management services, including maintenance, servicing, insurance, and roadside assistance. This outsourcing of fleet management tasks allows businesses to focus on their core operations while ensuring their vehicles are well-maintained and compliant with regulations.

How to Contact Us

If you’re interested in learning more about Stable Vehicle Contracts' latest business car leasing deals and special offers, please don’t hesitate to get in contact with us today. You can phone us directly on 0151 728 4711 and you’ll go straight through to a real person.

Alternatively, you can submit a contact form on our Contact Us page or send us an email directly at sales@stablevehiclecontracts.co.uk. You can also message us via our social media channels which are monitored daily. You can visit our Facebook and Instagram and DM us and we’ll get back to you as soon as possible regarding your business car lease deal.

If you want to see our reviews, please visit our Reviews page. We’re rated 4.9 out of 5 by over 1,300+ genuine and verified customers.

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Why Should I Choose Business Contract Hire?

BCH offers a high degree of flexibility when it comes to leasing. Businesses can choose the lease term, mileage allowance, and additional services tailored to their specific needs. Whether a company requires a single vehicle or a large fleet, BCH agreements can be customised to match operational requirements and financial constraints.

The financial benefits of BCH are compelling. The ability to avoid large capital expenditures, coupled with predictable monthly payments, makes BCH an attractive option for businesses looking to optimise their financial resources. The tax advantages further enhance the financial appeal of BCH, providing businesses with additional savings.

With BCH, businesses can ensure their employees have access to reliable and efficient vehicles. This can improve productivity, reduce downtime caused by vehicle breakdowns, and enhance the overall efficiency of business operations. The inclusion of maintenance and servicing in many BCH agreements means vehicles are regularly checked and serviced, reducing the likelihood of unexpected issues.

A modern and well-maintained fleet can significantly enhance a company's professional image. Clients and partners are likely to have a positive impression of a business that uses new and well-presented vehicles. This can be particularly important for businesses that rely on a fleet for customer-facing activities, such as sales or service delivery.

Many businesses are increasingly aware of their environmental impact and are looking for ways to reduce their carbon footprint. BCH allows businesses to choose vehicles with lower CO2 emissions and better fuel efficiency. Regularly updating the fleet to newer, more environmentally friendly models can contribute to corporate sustainability goals and compliance with environmental regulations.

At the end of the lease term, the vehicle is simply returned to the leasing company, eliminating the need for businesses to worry about the resale or depreciation of the vehicle. This simplified disposal process saves time and resources, allowing businesses to focus on acquiring new vehicles or renewing their lease agreements.

Business Contract Hire offers a range of advantages that make it an appealing choice for businesses in the UK. From cost management and tax efficiency to operational efficiency and environmental benefits, BCH provides a comprehensive solution for businesses looking to maintain a modern, reliable, and professional fleet of vehicles. By choosing BCH, businesses can enjoy the flexibility, financial advantages, and reduced administrative burden that come with leasing, all while preserving capital and improving cash flow. Whether for a small business or a large corporation, BCH presents a practical and efficient approach to managing company vehicles in the ever-evolving landscape of the UK car market.

If you would like to learn more about business contract hire, you can view our business car leasing guides.

Why lease with Stable Vehicle Contracts?

Stable Vehicle Contracts have leased over 15,000 cars and vans since our inception back in 2009. We're part of a large dealership group called Swansway Motor Group, with over 25 dealerships across the UK. Our office is based in the Volkswagen Van Centre in Liverpool, one of the UK's leading van centres having won multiple awards. 

Stable takes pride in our fantastic customer service and we maintain exceptional levels of customer satisfaction. We have over 1,300 5-star reviews from verified customers. Only customers who've received a vehicle from us can leave a review, so you know the reviews are genuine. As well as this, 99% of our customers would recommend us. You can read our glowing reviews on reviews.io here.

Stable is authorised and regulated by the Financial Conduct Authority (FCA), meaning we prioritise your interests and provide fair treatment according to their strict guidelines. This means you can expect a suitable service that puts your needs first.

An image of the Volkswagen Van Centre where Stable Vehicle Contracts has its offices
The Liverpool Volkswagen Van Centre, where our offices are located

Our Business Car Lease Deals in 3 easy steps:

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Choose your business lease deal on our site

Choose the best business lease deal for your vehicle by using our website. Put in your annual mileage, contract length, initial rental, and any extras such as maintenance or changing the spec of your vehicle.

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Sign your finance documents

Submit your finance application via our website and then await the finance company's decision. Usually, they come back to us within 24 hours. Just sit back and relax for now.

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Wait for your car to be delivered

Once you are approved for a vehicle, all you need to do is leave it to us. We'll keep you updated on the status of your vehicle and then let you know what date it will be delivered to your doorstep.

Interested in learning more about Business Car Leasing?

Read our leasing guides below

An image showing the Volkswagen Van centre in Liverpool, where Stable Vehicle Contracts are also located

More About Us

We're based inside the Volkswagen Van Centre in Liverpool. We're part of Swansway Motor Group, which has over 25 different dealership sites across the UK.

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Our Leasing Guides

New to car leasing? Confused about what personal and business contract hire mean? View our leasing guides here to learn more.

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Electric Leasing Guides

Want to lease an electric car or van? Confused about charging times, cables and other jargon? View our electric leasing guides to learn more.

What Our Customers Think Of Us..

Business Car Leasing FAQs

Personal car leasing, also known as Personal Contract Hire (PCH), is a vehicle leasing agreement for individuals. It allows you to drive a new car for a set period and fixed monthly payments without the intention of ownership. Business car leasing is for companies and offers potential tax benefits, while personal car leasing is for individuals and does not offer business tax advantages. The terms and conditions can also differ based on usage and mileage allowances.

For self-employed individuals in the UK, the choice between Personal Contract Hire (PCH) and Business Contract Hire (BCH) depends on VAT registration and vehicle use. BCH is ideal for VAT-registered individuals as they can reclaim VAT on payments if the vehicle is primarily for business use. PCH is simpler for those not VAT-registered and using the car for both personal and business purposes.

Annual company vehicle tax (Benefit-in-Kind, BIK) for a leased car depends on its CO2 emissions, P11D value (list price), and the employee’s tax bracket. For example, a car with a P11D value of £30,000 and a BIK rate of 24% results in a BIK value of £7,200. A 20% taxpayer would owe £1,440 annually. Check the latest HMRC rates for accurate calculations.

A company car is provided and maintained by the employer, with employees paying Benefit-in-Kind (BIK) tax based on the car’s value and emissions. A company car allowance is a cash payment added to the salary, used to buy or lease a car, with the employee covering all costs and the allowance being subject to income tax.

Yes, leasing a vehicle in the UK involves several restrictions: a credit check, age requirement of being at least 18 years old, a valid UK driving license, comprehensive insurance, adherence to mileage limits, maintaining the vehicle’s condition, and proof of steady income. For BCH, the vehicle must be used mainly for business, and the lessee must be VAT-registered.

Stable Vehicle Contracts does not offer insurance with our business contract hire leasing offers. This is something you would need to sort yourself before the vehicle is delivered.

All of our business car leasing contracts include free UK mainland delivery, tax included as part of the contract length and the full manufacturer's warranty for peace of mind.

At the end of a business car lease agreement, you return the car to the leasing company. You can then choose to lease a new car, extend the current lease, or simply walk away.

Still confused about Business Contract Hire? Contact one of our friendly sales advisers today to find out more and we'll be happy to help.