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Personal contracts vs business contracts

Business contract hire - (business car leasing, car leasing, business lease car, BCH)

Business contract hire (BCH) is the method with which businesses can finance their vehicles.
A business contract hire agreement features a down payment and subsequent monthly payments for an agreed period and maximum mileage. At the end of the agreed period the car is returned to the finance company. Business contract hire is subject to VAT, of which 50% can be reclaimed.
Deals are normally calculated over two or three years, and the mileage allowance is agreed in advance - the minimum is normally 10,000 miles per year and maximum is normally 40,000 per year. Mileage over and above the agreed amount is charged at an excess-mileage rate at the end of the contract.
The minimum down payment on business contract hire is normally three monthly payments in advance, although this can be as low as £99 or as high as nine monthly payments depending on the deal taken.
Please be aware that any damage must be repaired prior to return, or this will be charged in addition to the contract.

Personal contract hire - (personal car leasing, personal lease car, PCH)

Personal contract hire (PCH) is very similar to business contract hire but you can't reclaim the blocked VAT.
Personal contract hire prices should always be displayed including VAT, and the deals work along the same format as business contract hire, with a down payment comprising three payments up front then monthly payments for the remainder of the two- or three-year term.
Deals are normally calculated over two or three years, and the mileage allowance is agreed in advance - the minimum is normally 10,000 miles per year and maximum is normally 40,000 per year. Mileage over and above the agreed amount is charged at an excess-mileage rate at the end of the contract.
The minimum down payment on business contract hire is normally three monthly payments in advance, although this can be as low as £99 or as high as nine monthly payments depending on the deal taken.
Please be aware that any damage must be repaired prior to return, or this will be charged in addition to the contract.

Important note
In both instances, the vehicle will belong to the finance company. You will be the registered keeper of the vehicle.

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