Business Car Leasing Deals

When it comes to leasing, you've got the choice of either a personal car lease or a business car lease. Also known as Business Contract Hire, find out how business car leasing can help your business.

How Does Business Car Leasing Work?

It's called Business Contract Hire for a reason, because business leasing is almost like a long-term hire.

Like personal car leasing (Personal Contract Hire), business car leasing is a car finance agreement, except it's your company details on the lease rather than your own personal details.

Apart from that, it's mostly similar to personal car leasing. You choose a brand new car, customise the lease deal for your preferred mileage, initial rental and contract length, then make your enquiry and take delivery of the car.

Benefits of Business Car Leasing

✔️ Fixed monthly payments

✔️ Flexible contract

✔️ No depreciation worries

✔️ Brand new car

✔️ Able to reclaim Tax and VAT

✔️ Full manufacturer's warranty included

✔️ Breakdown cover included

✔️ Road tax included

How Our Business Car Leasing Process Works

1) Pick the car that takes your fancy

2) Adjust the business car leasing deal for your preferred mileage, initial rental and lease length

3) Enquire by clicking 'Get my quote' or the Call icon

4) Finalise the deal with our leasing partners

5) Drive and enjoy

6) Receive inspection and collection on the business vehicle at the end of your lease

Do I Qualify for a Business Car Lease?

Business car leasing usually works best if you come under one of the following:

• Sole traders

• Limited companies (Ltd.)

• VAT-registered companies

• Private limited companies

• Public limited companies

• Partnerships

• Charities

Not one of those? Then you may still be eligible for business car leasing deals. Our leasing partners will be able to advise you further.

Can I Get Business Car Leasing as a Sole Trader?

Sure can, the main exception being if you drive a taxi or Uber vehicle due to restrictions limiting how a business vehicle can be used commercially, and also due to how many miles you're likely to be driving each year as a taxi or Uber driver.

Will I Go Through a Credit Check?

Similar to personal car leasing (Personal Contract Hire), business car leasing deals require you to undergo and pass a credit check and be approved by the finance company providing the funding for the lease deal. They need to know that you'll be able to make the payments.

Providers are normally looking for a 'fair' to 'good' credit score of around 700, but it's still possible to get accepted for a business lease with a lower credit score. You may just have to provide some more info.

If you’re the company director and have poor personal credit, you will still have a good chance of getting accepted if your business has strong credit.

You will also be asked to provide proof of your business, so things like bank statements, audited accounts, proof of ID and address.

Can a New Business Get Car Leasing?

Finance companies prefer that you have at least a few months of trading history, but even without that, it's still possible for you to get approved for a lease.

You might be asked to provide further information to prove that you'll be able to make the monthly payments, such as a director's guarantee.

Are Business Car Lease Payments Tax Deductible?

If you use the car exclusively for business use, you'll be able to claim back 100% of the VAT. Or if you use the car for both business and personal use, you'll be able to claim back 50% of the VAT – perks which you don't get with personal car leasing.

Of course, you'll need to be VAT-registered in order to be able to claim back any of the VAT on a Business Contract Hire agreement.

In addition, your fixed monthly payments on business car leasing deals will be ‘off-balance sheet’, meaning they won't be shown as an asset or as a liability – meaning you won't look any worse off for investors looking to fund your business.

How Soon Do You Need Your New Car?

If the answer to that is within the next 2-4 weeks, then you probably want to go with an in-stock deal.

Or if you don't mind waiting 2-4 months for delivery but would appreciate more colour/spec options when it comes to customising your lease, then you might want to go with a factory order deal (meaning the car is yet to built).

What Happens at the End of a Business Car Lease Agreement?

At the end of a business car lease agreement, you simply hand the car back.

No hard decisions on whether to make a final balloon payment, and no hassle of having to sell the car on.

Somebody will come to inspect and collect the vehicle at the end of your business lease contract, and as long as you haven't driven any excess miles or damaged the vehicle beyond fair wear and tear guidelines, you'll have nothing left to pay.

Lease with LeaseLoco

Sound good?

Then take your pick from the best business car lease deals below and hit the road.

FAQs about Business Car Leasing

What is the difference between business leasing and personal leasing?

Basically, personal car leasing (Personal Contract Hire) is for private individuals whilst business leasing is for limited companies, partnerships, sole traders or LLPs. The two are mostly similar except for the tax advantages that you get with business car leasing deals.

Can you lease a car if you own a business?

Yep, and it’s fairly common. The types of organisations usually accepted include Limited Companies (Ltd.).

Even if it’s a new business and you haven’t been trading for long, you’ll still be eligible for business car leasing, though the credit check process might be a bit more stringent. For example, you might be asked to provide a bank statement and/or a director’s guarantee as extra proof that you’ll be able to make the monthly payments.

Is it cheaper to lease a car through a business?

Business car leasing (or Business Contract Hire) normally ends up being cheaper than personal car leasing.

That’s mainly due to the fact that you can reclaim some or all of the VAT: up to 100% if you use the vehicle for business purposes only, or 50% if you use the vehicle for both business AND personal use. Either way, that’s quite a significant saving compared to Personal Contract Hire.

Do you have to be VAT registered to get a business lease car?

Strictly speaking, you don't have to be VAT-registered in order to be accepted for a business car leasing deal, but you’ll obviously be eligible for certain tax perks if you are.

Specifically, you’ll be able to claim back 100% of the VAT if you use the vehicle for business purposes only, or up to 50% of the VAT if you use the vehicle for both business and personal use.

Who is responsible for insurance?

There's a lot that comes included with business car leasing. Unfortunately, insurance isn't one of them, so you'll have to arrange this separately.

With a Business Contract Hire Agreement, the insurance certificate should be in the company name or a director's name. A letter on a company-headed paper might be requested to confirm that the employee is permitted to drive the vehicle, and to confirm their position in the company.

What is the difference between a company car and a company car allowance?

A company car is a vehicle that's provided by your company for business use, meaning it is eligible for business leasing. On the other hand, a company car allowance is a cash allowance which is added on to your annual salary for you to use.