If you're seeking vehicle finance as a limited company, partnership, sole trader, or LLP, business leasing may be available to you.
At times, manufacturers offer special rates exclusively for business lease customers, which can result in a difference in pricing between business and personal rates. Business car leasing also provides positive tax consequences. Under a business lease contract, you may reclaim up to 50% of the rental (for cars) or up to 100% (for commercial vehicles).
If you're seeking vehicle finance as an individual, personal leasing may be an option. Personal contract hire is comparable to a BCH agreement, with the exception of VAT reclaiming. All personal contract hire prices include VAT.
In certain cases, personal car leasing may be the better option for certain businesses. For instance, if you're a self-employed individual who has recently started your own company, you may not have the credit history that most funders require for a business lease. In such instances, personal leasing may be a more viable option.