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What is Business Contract Hire?

When choosing to finance a vehicle, Business Contract Hire may be best suited for you and your specific business needs. There are numerous benefits to leasing a car which will not only benefit you, but also your business.

Car Leasing has quickly become one of the most appealing ways of having access to a vehicle without any of the troubles of actually owning it. Not having to deal with the road tax or general maintenance of a vehicle can also allow you to save money in the long run.

If you work in a business that is expanding then car leasing is one of the best choices available. After a contract is finished you are able to go straight into another car leasing agreement, meaning that you can have the latest model from your preferred car manufacturer.

There are different contracts to consider, but one of the best options which is best suited to companies is Business Contract Hire.

What is Business Contract Hire?

A Business Contract Hire agreement is a long term arrangement which allows a business to lease a car. The standard time span for one of these contacts is be anywhere between 24 to 60 months. After the contract is finished, the car just needs to be returned to us.

Business Contract Hire agreements are all calculated with a fixed monthly rental cost that is static over an agreed period of time, as well as an annual mileage limit. We try to be as accommodating as possible, which is why we allow you to customise both the agreement duration and mileage.

One of the things we focus on at Lease Car is making sure that the agreement is accommodating to your needs. If you find that you have agreed to a mileage limit, but you require an extension, then it is not a problem. You can change your agreement so that it works to your new mileage figure.

Who is Business Contract Hire best suited for?

A Business Contract Hire is mainly used by commercial enterprises, but there is no limit on the sector or industry which could take out a lease agreement. You might be a national corporate business, or even a sole trader, and Business Contract Hire could be a real option for you.

What are the main benefits of Business Contract Hire?

Lower cost

Something that attracts a lot of people to take out a Business Contract Hire agreement is the low initial rental. Compared to how much you could pay for buying a car, the difference is staggering.

Fixed costings

When working within a business, costings related to vehicles can often be a worry. If you choose a Business Contract Hire agreement, it will have fixed costs which includes the actual leasing service, maintenance, servicing and even the road tax.

Being able to plan how much you use a vehicle is crucial within a business, and fixed costings makes it so much more easier. Any costings can be worked out well in advance before you even start using the car, so you will always be prepared.

By saving money through car leasing, you use the money to invest in other parts of your business, allowing you to grow.

Lower risk

When you start a Business Contract Hire agreement, you agree on a predicted level of depreciation. Any depreciation that may occur will not compromise your contract.

By not owning the vehicle, you do not have to worry about selling it on after your contract has ended. You can simply return it. Furthermore, in the same day as returning the vehicle, you can create another contract on a new vehicle.


When running a vehicle from within a business, it is important that you have correct paper work. We are able to handle all documentation that comes with a car; including tax discs, number plates, and MOT certificates. If you have any queries about any of these pieces of documentation then you can simply contact us and we can send a copy.


Many businesses do not realise that if you lease a vehicle exclusively for commercial use, you are able to claim back 100% of the VAT. Even if the car is used as a private vehicle, you are still able to reclaim at least 50% of the VAT.

LeaseCar and You

At LeaseCar, we have an extensive range of cars to choose from which can benefit you - as well as your business. Furthermore, all of our leasing agreements are tailored to the individual business.

If you have any questions or queries, please contact us today on 0344 745 1818. Alternatively, you can also speak to us on Twitter (@LeaseCar_UK).

Business Contract Hire Agreements to Suit Your Needs and Budget

At LeaseCar, we've been matching company car drivers with the best business vehicles since 1998. This means that we've got years of experience when it comes to getting our customers the best business contract hire deals with terms tailored to their unique needs.

We're experts on the complex business car leasing market, so we're happy to spend time discussing your driving needs to help you choose the perfect vehicle and lease agreement.

Working with a company that you can trust is essential when you're leasing a car for business. We'll be entering into a long-term relationship spanning your entire contract duration and possibly even longer. 

LeaseCar's reputation for excellent customer service and ongoing support has been built over 25 years. It's something that we're very proud of. That's why we pledge ‘Safe Hands' promises to all our customers. Our mission is to make sure that every business contract hire we arrange means another business customer drives away with a smile on their face!

What Is Business Contract Hire?

Leasing company vehicles is becoming more popular year on year as business owners choose leasing over traditional purchasing. Whether you manage a vehicle fleet, own a company or you're a sole trader, business car leasing has many benefits.

business leasing agreement is a monthly car rental scheme with a 2, 3 or 4-year term and a range of options customised to meet your exact needs. Your monthly costs remain the same over the entire term, covering your rental costs, maintenance, servicing and road tax (VED). Business contract hire agreements provide monthly rental options to suit your budget, attractive tax benefits, and even the opportunity to extend the duration of your agreement in certain circumstances.

You can customise your lease with a mileage allowance to suit your projected needs. That gives you the ability to plan both your vehicle use and budget ahead - crucial for both business owners and company car drivers. And, if your needs change and you need to increase your annual mileage allowance, it's not a problem - you can change your agreement without incurring any penalties or excess mileage charges.

At the end of the contract hire term, you simply hand the car back to us. Leasing a new vehicle means you'll drive away in a brand-new model, enjoying all the latest tech as well as improvements in efficiency, safety and driver-comfort gadgets.

Is Business Car Leasing Right for Your Company?

Whether you're building an impressive fleet of company cars or you're a sole trader looking for a single vehicle, leasing provides you and your business with plenty of benefits.

Fixed Monthly Costs

When you're trying to plan a business project or manage cash flow, outgoings that fluctuate every month can be a headache. When you have a business contract hire agreement, your monthly rentals remain the same for the duration of your lease - there are no hidden surprises. 

Having your monthly costs fixed allows you to plan your expenditure, manage your accounts and make financial forecasts with ease.

Lower Monthly Costs

Business contract hire is typically much more economical than other ways of financing a company car. There is a minimum initial rental to make, then you can drive away in the car with peace of mind that your low monthly rental costs will remain the same.

Having lower monthly costs means more money in your business's bank account. These savings can enable you to invest in other areas of your business and finance plans for expansion.

Combine savings on your monthly outgoings with the other financial benefits of leasing and it's easy to see why more businesses are choosing to hire rather than purchase.

Better Cars for Your Company

Choosing to lease rather than buy opens new doors when it comes to choosing your vehicle. A big reduction in initial outlay and ongoing costs means that you can consider newer, better cars. This is good news when it comes to making the right impression on your customers and building your corporate image. Take a look at the wide range of prestigious cars you can lease.

Of course, it's not all about looks. Vehicle break-downs and unforeseen trips to the garage workshop cause downtime and affect your reputation for reliability, both of which can hit your business in the pocket. Unexpected repair bills can delay your plans for improvements or business expansion. Driving a new car means there are likely to be fewer mechanical problems.

When you choose a business contract hire agreement with LeaseCar, we can take care of the servicing and general maintenance so you don't have to worry about it. And, should there be an unexpected problem, you can rest assured that we'll sort it out hassle-free to get you back on the road as quickly as possible.

Read more about maintenance cover here.

Say Goodbye to Depreciation Risks

All cars depreciate - that's unavoidable. But, when you own a car and come to sell it, depreciation can be a shock. Larger cars, such as those typically used as company vehicles, usually have a higher rate of depreciation. This can leave you out of pocket and seriously reduce the available budget for your next car. Find out how depreciation works here.

At the beginning of a business contract hire agreement, we'll look at the predicted level of depreciation on your chosen vehicle - this will be reflected in your contract terms. If the depreciation exceeds this prediction, you won't have to pay a penny more. This means there's no impact on the budget for your next car.

Leasing your car also means avoiding the time-consuming and often disheartening process of trying to sell it. Simply hand the keys back to us, sign a new lease agreement and drive away in a new car.

Save Time on Administration

Cars come with a lot of paperwork attached. Managing the documentation for one car demands time. Increase this to running a fleet of company cars and you've got a complex, time-consuming task on your hands.

When you lease your business car from LeaseCar, we handle all the documentation and registrations for you. This frees up your time to spend on other important tasks. 

Our administration team are experts when it comes to maintaining records, so you can enjoy peace of mind that your documents are correct and up to date. And, if you have a query or want some information for your records, just contact us and we'll send you the copies you need.

Savings on Company Car Tax

If you're a sole trader, partner or LLP member, you don't have to pay company car tax at all. But, that's not the case for many company car drivers and business owners.

Cars are becoming more efficient, and manufacturers are working hard to reduce harmful emissions. But, making a positive impact on pollution levels relies on more people choosing to drive newer, cleaner-performing vehicles.

When you choose to lease your company car, you'll be driving a newer car. This means that, while you enjoy all the latest technology and performance improvements, the planet benefits too. 

Government Initiative for Businesses to Go Green

To incentivise more business drivers to go greener, the government has made changes to Benefit in Kind (BiK) tax rates. There are now considerable savings to be made by savvy drivers. 

BiK rates differ, depending on the specification of your chosen car. As you'd expect, fully electric vehicles (EVs) and plug-in hybrids (PHEVs) attract less tax than comparable petrol or diesel cars. If you choose an electric or plug-in hybrid vehicle, you could save thousands. 

To find out more about company car tax, read ‘The Company Car Tax Guide 2022/2023', published by AutoExpress.

Your monthly lease costs can also be offset against your taxable profits. The amount that can be included depends on how much CO2 your car produces. For example: The full net monthly lease cost can be offset for a car that emits CO2 emissions of 110g/km or less; 85% of the net monthly lease cost can be offset if a car's CO2 emissions exceed 110g/km.

Take a look at the greener cars we offer.

Savings on VAT

If you're leasing your car exclusively for commercial use, you can claim 100% of the VAT back if your business is VAT registered. This includes the payments for any additional maintenance options you choose to add to the lease. 

Even if you're using the car as a private vehicle, you can still reclaim at least 50%.

Finding the Best Cars for Business Car Leasing

Choosing the right car can be daunting. There are thousands of cars on the market, each with its own pros and cons. With so much choice and so many options available for each model, how can you be sure that you're making the right decision?

When you're selecting a car for business use, it's essential to choose the right model to fit your needs, budget and expectations. At LeaseCar, we're not just experts on the business leasing market, we're car enthusiasts who keep our knowledge of the market up to date and comprehensive.

In this era of incredibly fast-moving technology, we can help you make an informed choice and drive away in the car that's a perfect match for you and your business.

Choose from a huge range of cars. And, if you need our advice, we're happy to make recommendations based on your individual circumstances. If you're looking for a fantastic deal, don't miss our special offers.

LeaseCar Makes Business Contract Hire Easy for Your Company

The business leasing market offers hundreds of deals, each suited to different circumstances. It can be confusing, not to mention incredibly time consuming, to sort through the offers and choose the right one.

To make the process far easier, we use our experience to pre-compare what's available and select the best options for you to choose from. 

We'll deal with your credit application and financial credit agreements. Once the credit check is out of the way, you've signed your lease agreement and chosen your car, we'll deal with all the necessary documentation and registrations.

Working with a large network of vehicle suppliers for over 25 years means that we can deliver your car quickly and without any frustrating delays. Whether you've ordered a single car or a whole fleet, we'll have you on the road in no time.

Talk to our leasing experts today to find out how business contract hire will work for your company.

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