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Business Car Leasing
FIXED PRICE BUSINESS CAR LEASE
Leasing offers you and your business tax advantages, a fixed monthly price and includes vehicle tax for the full term.
Business Car Leasing
FIXED PRICE BUSINESS CAR LEASE
Leasing offers you and your business tax advantages, a fixed monthly price and includes vehicle tax for the full term.
Many business contract hire cars and vans in stock and available for delivery
AA Lease is provided by Wessex Fleet Solutions. AA Financial Services Limited introduces you to Wessex Fleet Solutions and is acting as a credit broker and not a lender. AA Financial Services Limited receives a commission from Wessex Fleet Solutions, which can vary based on the lender and vehicle selected. By placing an order to lease a vehicle, you consent to the commission being paid and acknowledge AA Financial Services Limited is not acting impartially.
Our best UK business car lease deals
All monthly car lease prices include vehicle tax for the full term.
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Browse all our business contract hire leases today and get your company moving.
What is business contract hire?
Business contract hire is a service that enables your company to hire vehicles that are then used for business purposes for a fixed price.
Your company chooses which cars or vans it wants to lease, how long to lease the vehicle (typically up to four years) then pays a monthly fixed price over the course of the contract. During this time, vehicle tax is included and there is an optional Maintenance Plan that covers all of your servicing, maintenance, repairs and breakdown cover for the duration of the lease, at a fixed price.
At the end of the contract, the vehicle is returned, and your company can choose to lease another vehicle or not, depending on your needs. During the lease period you can add more vehicles or, if you wish to, change the mileage or term.
Business Contract Hire can be used by partnerships, limited companies, limited liability partnerships (LLPs), PLCs, local authorities, charities, embassies, or the self-employed, then driven by the business owner or their staff.
Business Contract Hire vehicles are used by many different organisations. In July 2022, BVRLA (British Vehicle Rental and Leasing Association) Leasing Outlook statistics showed the business contract hire fleet numbered over 763,000 – well over double the consumer car lease fleet.
What are the benefits of business car leasing?
There are a number of benefits vehicle leasing can offer your organisation:
- Save 100% of VAT on the car – You can reclaim the entire VAT on your business vehicle lease if your company is VAT-registered, or 50% if the vehicle is used for private journeys as well as purely business travel. This tax benefit means cheaper deals than personal car leases.
- Save 100% of VAT on the maintenance – A second tax benefit means if your company vehicle lease package comes with maintenance, servicing, or MOTs included, you can save up to 100% of the VAT on those parts of your lease.
- Low emissions equal even lower taxes – If your business lease is for low-emission or electric vehicles, you can offset different percentages of the tax depending on your vehicle CO2 emissions per kilometre.
- New vehicles with zero depreciation – Brand-new vehicles look professional and are safer than second-hand. Buying new can be expensive, especially when you account for depreciation. With a business contract hire lease, you can get new vehicles for your staff without the cost of depreciation eating away at the value of your asset.
- Improved cash flow – Business vehicle leasing helps your company cash flow. Monthly payments are fixed, maintenance can be included in the price. This means less risk and uncertainty, which makes your business finances more predictable.
Learn about the benefits of getting a business lease hire car through AA Lease today.
What is the difference between business contract hire and personal contract hire?
There are some key differences between business contract hire (BCH) and personal contract hire (PCH) to bear in mind when you are deciding which type of car lease to choose. :
- Fleet Potential: While personal contract hire limits you to a single car, business car lease deals offer expansive fleet-wide solutions that adapt to your company's evolving transportation needs.
- Financial Flexibility: Business leases typically require more comprehensive credit histories, meaning newer self-employed professionals or start-ups might find personal contract hire more accommodating to their current financial situation.
- Tax Optimization: Business car leasing delivers substantial tax advantages, with primary benefits centered on VAT reductions for low-emission and electric vehicles – a strategic financial opportunity for forward-thinking businesses.
- Competitive Pricing: Leveraging fleet-wide arrangements, business contract hire customers can often secure more competitive vehicle deals compared to individual personal leasing options.
What's included?
All our business lease deals come with great benefits for a clear upfront fee and predictable monthly price with zero hidden costs.
- Vehicle rental costs
- Vehicle tax
- Free delivery and collection
- Single change of term or mileage
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Business Contract Hire FAQs
What to consider when leasing a business car?
Selecting the right business lease requires a strategic approach that aligns with your company's operational needs and financial goals.
Start by establishing a clear budget with your financial team. Evaluate the lease as a comprehensive business expense, carefully analyzing potential tax advantages and the long-term value of maintenance-inclusive contracts. This financial groundwork is essential for making a smart procurement decision.
Your vehicle selection should precisely reflect your business requirements. Consider the vehicle's primary purpose – whether it's for client visits, equipment transportation, or as a multi-use company asset. Critical factors like fuel type, battery range, and transmission will directly impact your operational efficiency and running costs.
Mileage planning is crucial. Select a contract that accurately matches your expected usage to avoid unexpected penalties. An ill-fitted mileage agreement can result in significant additional charges at the end of your lease term, undermining your initial cost-saving strategy.
Who insures the vehicle?
The business leasing a car will need to arrange their own insurance for it, starting on the day the vehicle is delivered. We can provide the vehicle’s registration number to speed up and simplify this process for you.
Can all businesses get a Business Contract Hire vehicle?
A wide range of businesses can get a company vehicle lease, although very new companies may find it more difficult to get a quote. To learn more, please get in touch.
How it works
AA Lease is flexible to provide the type of car you need, from 2 to 4 years, and for the mileage you drive. And you can arrange it all from home.
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Any questions?
Talk to our customer service team. They’ll be able to help you decide on the best business contract hire vehicles for your company.
How your data is used
The AA Financial Services privacy notice and the Wessex Fleet Solutions privacy notice explain how and why we use your personal information – including what details we hold, whom we might share them with, and your choices and rights. It also includes information about any checks and decisions we may make.