Difference Between Personal and Business Leasing

09th Mar 2017

Getting to grips with what Personal Contract Hire (PCH) or Business Contract Hire (BCH) is all about can be tough. Especially if you aren't sure which one is applicable to you.

When choosing which leasing contract is best for you, it comes down to a range of different factors; most notably whether the vehicle in question - be it a car or van - would be involved in business use, or if you're applying for finance as a limited company, partnership, sole trader or LLP.

When taking out a lease contract the first step is to decide which vehicle it is that you want to lease. You can take a look at the current vehicle's available by visiting Evans Halshaw Leasing.


Personal Contract Hire or Business Contract Hire
The second thing to do is to decide which Lease Contract is best for you or your business. Knowing the real difference between the two will help you to come to this decision.

So, which Lease Contract is best? And what's the real difference between them? Let us explain:

Personal Contract Hire (PCH)

PCH is a popular choice for those wanting hassle free motoring without owning a depreciating asset.

The benefits of PCH include:

  • Fixed monthly rentals
  • Road tax included
  • Maintenance options are available
  • No depreciation to worry about
  • No disposal issues
  • Loan car as standard if your car is off the road
  • Flexible terms  

We work with a huge number of vehicle manufacturers so we can offer a wide choice of available leasing vehicles, and at the end of the contract you simply hand the car back. You can then start again with a brand-new car.

As with most big decisions in life, there are a few things to consider before deciding to lease a car, such as:

  • Be aware that if you leave your lease agreement early could incur some additional charges
  • Any additional mileage exceeding the agreed amount will be charged to the user at a few pence per mile
  • The car must be returned in good condition
  • Road Tax is included within these agreements; other packages such as maintenance may be costed in to be included

Additional information will be required when applying for a PCH contract, including personal details, address details and bank details. 

If you think PCH could be the right option for you then you can look at our current Leasing Options.

Business Contract Hire

If you're looking to apply for finance on a vehicle that would be involved in business use, or if you are applying for finance as a VAT registered, limited company, partnership, sole trader or LLP, then Business Contract Hire could be the best option for you. Occasionally some exclusive offers are available for business customers only, based on your eligibility for business leasing.

The benefits of business leasing include:

  • VAT can be claimed back on business leasing
  • You can reclaim up to 50% of the rental for cars, and up to 100% on commercial vehicles against tax
  • Fixed monthly rentals

To qualify for business leasing, you would need to supply the following information:

  • Details of your company such as name, address, annual turnover and company reg. number
  • Details of the company director including name, date of birthday and marital status
  • Business bank details such as account number and sort code
  • In some cases, more information will be required such as a 3 months' business bank statements or director's guarantee.

If you're self-employed it could mean that a personal leasing contract may be the best option for you but if you're unsure as to which contract would be best for your personal circumstances our Evans Halshaw Leasing advisors will be more than happy to help.

Choosing between PCH and BCH leasing can be a tough one to make, whatever you decide the team at Evans Halshaw Leasing will be on hand to answer any questions and find the right contract for you.

If you're looking to get a business fleet of more than 25 then you can contact our fleet management company Pendragon Vehicle Management.