What is business contract hire (BCH)?
You need to be a sole trader, in a partnership or have a limited or a public limited company, to take out a BCH agreement.
Business contract hire is essentially a long-term vehicle leasing agreement. Like other leasing agreements, monthly payments are fixed and are based on your annual mileage limit. At the end of your contract (generally between one and five years), you simply return the vehicle.
When leasing a vehicle, the monthly payments are usually lower and you won’t need to worry about the vehicle depreciating in value. With BCH if the vehicle has some private use a VAT registered company can still reclaim a proportion of the VAT. If it is used only for business you can reclaim all the VAT.
Who is BCH for?
As long as the business meets the financial criteria, there are no eligibility limits on the industry or sector. Business contract hire agreements can be taken out by large corporate enterprises or sole traders. It will suit businesses who don’t want to purchase or change the vehicle before the contract ends.
What are the benefits of BCH?
- You’re not responsible for unforeseen maintenance charges.
- No need to worry about the vehicle deprecating in value.
- Drive a brand-new car every two or three years.
- Lower, fixed monthly payments.
- Claim back VAT.
BCH with Arnold Clark Vehicle Management
Being part of the Arnold Clark Group means we have close links to vehicle manufacturers and can offer any make or model available in the UK at competitive prices. We don’t use call centres or automated voice systems, and you’ll have a dedicated account manager who can offer expert advice. We have one the lowest end-of-lease charges in the industry and we’ll even pay you back for your unused mileage.
If you’re thinking about leasing your next commercial vehicle, speak to us today about business contract hire. Give us a call on 0141 332 2626 or fill out a quotation form and somebody will be in touch.