For many years Business Contract Hire (BCH) has been a popular way to lease a new car. Not only to provide your workforce with cars they would need to perform their duties, but also for business owners, of both large and small businesses.
There are many benefits to leasing a car through your business.
The business contract hire, or BCH, is a contract that sole traders, partnerships or corporations use to acquire vehicles on lease. The installment plan can be for either 24, 36 or 48 months, according to your preference. The end of the leasing term is extremely simple and does not require any much paperwork. You simply have to return the car to us. And after returning your car, you can acquire another car and this way you can have different cars after every few months and enjoy a better ride. You also avoid the depreciation risk of the car this way.
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With the ability to lease a car over 2,3 or 4 years, you can drive a new car with relative frequency, and choose a different car each time one lease ends and another lease begins, without changing the monthly cost too significantly.
For the entire period of lease, your car is fully covered by the manufacturer’s warranty. So, with the lease, you have also have complete piece of mind.
The depreciation risk is on the vehicle funder, therefore you do not have a depreciating asset on your books.
The initial down payment is very minimal and the monthly instalments are reasonable too, so companies can easily finance several vehicles at the same time.
You do not have to go through the hassle of selling your vehicle. You can simply hand back the keys and lease the newer vehicle.
You can easily recover 100% of if the vehicle is solely for business use and 50% if the vehicle is also used for private purpose.
if you want to purchase the car at the end of your leasing term, you can shift to the lease purchase option. The entire process is similar to the business contract hire except for a lump sum payment at the end of the term.