Difference Between Personal and Business Leasing

05th Feb 2021

What's the difference between personal and business leasing?

Understanding the difference between Personal Contract Hire (PCH) and Business Contract Hire (BCH) can be difficult, especially if you aren't sure which one is suitable for you.

When selecting the leasing contract that is most applicable for you there are a range of different factors to consider; most notably whether the vehicle in question, be it a car or a van, would be involved in business use. Applying for finance as a limited company, partnership, sole trader or LLP can also determine the most relevant leasing contract for you.

When taking out a lease contract the first step is to decide which vehicle it is that you would like to lease. You can browse our range of new cars and new vans or check out our current best car lease deals or best van lease deals.

Personal Contract Hire (PCH)

Ford Wolverhampton Showroom

Personal Contract Hire 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
  • Flexible terms

We work with a huge number of vehicle manufacturers so we can offer a wide choice of leasing vehicles. At the end of the contract you will simply hand the vehicle back and there will be no further costs, as long as the vehicle is in good condition and the mileage limit hasn't been exceeded.

Be aware that if you leave your lease agreement early, you could incur some additional charges.

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

If you think PCH could be the right option for you then contact your local Evans Halshaw dealership and ask to speak to our sales team for a quotation, help or advice.

Business Contract Hire (BCH)

Business Contract Hire

If you're looking to apply for finance on a vehicle that would be involved in business use, or if you're 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.

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

  • Company details (including name, address, company reg. number and annual turnover)
  • Director details (including name, date of birth and marital status)
  • Business bank details (including bank name, account number and sort code)
  • Three months' recent bank statements (if the business has been trading for less than two years or for high value vehicles)
  • VAT returns or utility bills (if the business has been trading for less than two years)
  • Company accounts (if the business has been trading for less than two years)
  • Copy of Director's driving licence or company accountant's details (for high value vehicles)

The benefits of business leasing:

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

If you think BCH could be the right option for you then contact your local Evans Halshaw dealership and ask to speak to our sales team for a quotation, help or advice.

Interested in leasing a vehicle from Evans Halshaw?

As you can see, PCH and BCH are very similar in the fact that a vehicle can be leased for a set period of time, at a fixed monthly cost and with a mileage limit. At the end of the contract the vehicle is returned.

However, the noticeable difference between personal and business leasing is that as a business leaser you can claim back the VAT.

Contact your local Evans Halshaw dealership for advice, to talk through the leasing process or to request a quotation.