BUSINESS CONTRACT HIRE (BCH)

We provide tailored leasing options designed to meet the unique needs of businesses. Whether you’re looking for Business Contract Hire (BCH) to manage your fleet with fixed costs and minimal risk, or a Finance Lease (FL) for greater flexibility and asset control, our solutions help companies drive modern, reliable vehicles without the financial burden of ownership. With options that offer tax advantages, predictable payments, and end-of-contract flexibility, AVC makes leasing simple, efficient, and cost-effective for businesses of all sizes.

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WHAT IS BUSINESS CONTRACT HIRE (BCH)?

FLEXIBLE LEASING SOLUTIONS FOR EVERY BUSINESS

Business Contract Car Leasing is a cost-effective and flexible way for businesses to lease vehicles without the long-term commitment of ownership. Ideal for companies of all sizes, it allows businesses to lease cars or vans for a fixed period (typically 2–5 years) with predictable monthly payments. This option helps manage cash flow effectively, avoid depreciation costs, and provide employees with reliable, modern vehicles. At the end of the contract, the vehicle is simply returned, allowing businesses to upgrade their fleet as needed.

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BENEFITS OF BUSINESS CONTRACT HIRE (BCH)

  • 1. Focus on Core Business

    Contract hire allows a business to concentrate on its core activities while avoiding the financial risk and administrative burden of owning a vehicle or fleet.

  • 2. Off-Balance Sheet Advantage

    Business Contract Hire is a popular acquisition method over other types of lease agreements, mainly because the finance provider is the owner of the vehicle, meaning the vehicle appears ‘off the balance sheet’ of your company.

  • 3. Predictable Monthly Payments

    Fixed monthly rentals for the entirety of the contract.

  • 4. VAT Savings for Registered Companies

    VAT benefits on rentals and maintenance element for VAT registered companies.

  • 5. Road Fund License Included

    Road Fund Licence is provided for the full term of the contract

  • 6. Flexible Vehicle Renewal Options

    You have an option to change your vehicle every two, three or four years

  • 7. Optional Maintenance Packages

    The added provision of a maintenance contract on the vehicle if required.

  • 8. Tailored Monthly Rental Calculation

    The cost of the vehicle (on the road price), the deposit secured (initial rental), the length of the agreement, and the annual mileage are all taken into consideration before a monthly rental is calculated to bridge the gap between how much the vehicle is purchased for, and its anticipated value at the end.

  • 9. Hassle Free Vehicle Return

    At the end of the agreement, you can return the vehicle to finance provider, leaving you free to start a new contract if you wish.

FINANCE LEASING (FL)

A FLEXIBLE SOLUTION FOR BUSINESS VEHICLE NEEDS

Finance Lease (FL) is an ideal product for businesses requiring cars, vans, or commercial vehicles when contract hire isn't suitable. This option provides flexibility and tax advantages, making it particularly beneficial for companies needing one or more vehicles but lacking the upfront capital to purchase them outright.

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KEY FEATURES OF A FINANCE LEASE AGREEMENT

Payment Options

Pay the entire cost of the vehicle, including interest, in fixed instalments over an agreed period. Alternatively, opt for lower monthly payments with a final “balloon payment” based on the vehicle’s anticipated resale value.

Ownership

During the lease term, the vehicle remains the property of the finance provider.

Usage

If leasing a brand-new vehicle, your company will hire it for a specified period and make regular monthly payments. This allows you to use the vehicle without facing the high upfront cost of purchasing a new one.

Asset Management

Vehicles leased under FL appear on your company’s balance sheet, giving you greater control over administration and financial reporting.

Fixed Costs

Monthly payments and interest rates are fixed, provided the agreed vehicle usage parameters are met.

TAX AND VAT BENEFITS

VAT Reclaim

VAT-registered businesses can reclaim between 50% and 100% of VAT on lease payments, depending on whether it’s a car or commercial vehicle. Non-VAT-registered companies can spread VAT costs across the lease term by incorporating them into monthly payments.

Tax Deductions

Lease payments can typically be offset against taxable profits, though special rules apply to cars.

END OF LEASE OPTIONS

At the end of the lease term, you have two choices:


Sell the Vehicle:
Arrange for the vehicle to be sold to an unrelated third party. Some funding providers may manage this sale for a small commission.


Pay the Balloon Payment:
Settle the outstanding balloon payment and continue using the vehicle under a “peppercorn” agreement.

WHY CHOOSE A FINANCE LEASE?

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Fixed Payments

A popular alternative to contract hire with fixed payments throughout the agreement.

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No Mileage Restrictions

No mileage restrictions or punitive damage charges.

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Asset Control

Assets appear on your company’s balance sheet, giving you control over their management.

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Flexible Payment Options

Choose full monthly payments or reduce them with a final balloon payment.

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End-of-Contract Flexibility

Sell the vehicle or pay the balloon and retain use under a nominal fee arrangement (peppercorn agreement).

Start your journey with Advanced Vehicle Contracts today.

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REWARDS WITH AVC

At Advanced Vehicle Contracts, we’re thrilled to reward you for sharing the love! With our referral scheme, you can earn a £100 voucher simply by recommending our services to friends or colleagues.


Here’s how it works: share your positive experience with someone who might benefit from our vehicle leasing solutions. If they sign up for a contract, you’ll receive a £100 voucher as a token of our gratitude. This voucher can be spent at most major retailers, giving you even more reason to spread the word.

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