Business contract hire is a long-term lease on a vehicle. CARMERCIAL leasing offer this finance package on both cars and commercial vehicles which are funded through a business. BCH is essentially a rental agreement.
You choose your make, model and spec of vehicle. We would love to help you find the perfect car or van and can assist with test drives and advice on what would work best for you and your business. Be warned though, we often like to throw a few ‘special offer curve balls’ so you might drive away in a higher spec car than you thought your budget would allow!
Our finance is flexible meaning quotes can be tailored to your needs. Length of term, mileage per annum and deposit is set by you. Don’t want to put any deposit down? No problem! Or maybe you’d prefer to pay more upfront and enjoy lower monthlies? No problem!
So, we’ve found you your dream car for less money than you expected. You’re chomping at the bit to get behind the wheel. What’s next?
We’ll ping over a finance proposal form via Docu-Sign for you to fill out and return. We’ll get it off to the finance house for approval and following that we can officially order you new car or van.
There may be a lead time or it could be a stock vehicle. Either way, we’ll do our best to get it you as soon as possible, or for the date you need it. In the interim we’ll get you to sign the finance documents and have all the paperwork completed prior to delivery.
Handovers can be arranged at the dealership or we can deliver the vehicle to your home or business. From there on in, you enjoy your new wheels! We’ll be here for you throughout the whole contract should you need any help or advice with any aspect of the car/ van or the finance agreement.
Any business whether it be a Sole Trader, Partnership, LLP, Ltd Company, or a PLC.
As the name suggests, it’s for a business of any type and structure. However, no matter what the company, it will need to pass credit checks to obtain the finance. Luckily we have a broad range of funders at our disposal meaning we can get you the best deals in the market.
We offer both lease and purchase finance options on new vehicles. The majority of our customers will go down the lease route rather than buying a car.
Usually 24, 36 or 48 months. Some funders may offer 60 months but rarely there’s any real advantage going for 60 months over 48.
On occasion we have seen some 18 month offers filter through but these are rare.
Your monthly rental is included in the lease/ rent of the vehicle. Road Fund Licence (RFL/ Road Tax) is included for the duration of the term. As you never own the vehicle, the finance house holds the V5C and takes care of this.
You have the option to add a maintenance contract which would include all servicing, maintenance and tyres.
Yes, every lease will have excess mileage charges. This will vary depending on the vehicle, terms and even the funder.
For example, if you have a contract for 10k miles pa over 48 months, that means the car should have 40k miles on it at the end of the contract. Say you go over that by 2k miles and the excess mileage charge is 10p per mile.
0.10 x 2000 = 200
Your excess mileage charge would be £200.
We would always suggest you ‘haggle’ with the funder on these charges as quite often they will reduce the charge.
To avoid charges you can also amend your annual mileage mid-contract to reflect what you’re doing. You will likely need to wait until the first year is up to do so.
With any leased vehicle, the funder/ finance house will own the vehicle.
Yes/ No/ Maybe/ Sometimes…
It’s a grey area tbh. Technically no, you shouldn’t be able to buy the vehicle at the end of contract. However, some funders (sometimes) will give you the option to buy, but not always!
Sorry to be vague but there’s no rhyme or reason to it. Quite often they’ll give you the option but on the flip side the next person may not be offered the same sort of deal.
We would advise going into a lease with the mindset that you won’t be able to purchase at the end. If the option becomes available, you won’t know until the last 30-90 days of the contract.
In short, you hand the car or van back and walk away.
You arrange a date with the finance house to get the car collected. A representative (usually from an auction house) will book an appointment to inspect the car or van. Quite often it will be taken away the same day.
We will be in touch in good time before the end of the contract to advise on what you need to do. We’d love to help you out with your next vehicle and will have this lined up so you can step ‘out of the old and in to the new’ with no disruption to your day.
Maintenance packages are optional. If you prefer to look after the maintenance yourself you can book in to a garage as and when it’s needed. The garage will invoice you for the work.
A full maintenance pack will cover all main dealer servicing, premium tyres, brakes, and anything else you need during the term. Repairs are also included which can come in useful should something go wrong when the vehicle is out of warranty.
A full maintenance package can be useful for budgeting your total vehicle costs over the term.
You are responsible for insuring the vehicle. As this is a business contract hire, it will need to be covered on insurance through the business.
*Please seek advice from your insurance company or broker to ensure you have adequate cover.
Yes!
Lower/ Zero CO2 will be more advantageous to put through your business compare to ICE (internal combustion engine) Cars. Speak to your accountant to find out how much corporation/ income tax you’ll likely save.
You’ll need to contact the finance house and request an early termination figure. In some instances we can do this on your behalf.
Rule of thumb is usually that they’ll ask for 50% of the remaining rentals paid to exit early. Some funders are more lenient than others and the charges may be less. Various factors may influence the termination charge. Mileage on the vehicle and current market price being two of the main ones.
We suggest you contact us first for advice.
You would need to go through the same process as you would for ending the contract early. They would be treated as two separate transactions even if you were ordering again through the same funder.
We offer flexible finance options meaning you can choose how much or how little deposit you’d like to pay.
No deposit, or a 1+ profile as it’s known is available on all of our lease agreements.
Typically our customers will pay 1+/ 3+/ 6+ or 12+ payments upfront. Some funder will set a max of 12+. Others may let you do more. We can advise at the quoting stage.
Yes, we offer business contract hire on all cars and commercial vehicles. Electric vehicles provide more tax benefits, as do commercial vehicles. Plug-in hybrids would be the next best bet for a Ltd company.
We can advise when quoting.
Deposit, length of term and mileage per annum are the 3 main factors that affect your rental.
We get fleet discounts on vehicles and marrying that up to the keenest finance to offer you the lowest payments.
At the end of the lease, vehicles are inspected by a representative of the finance house (usually from an auction house) under the BVRLA Fair Wear and Tear guide. Info on this can be found online.
In our experience, any charges for damage are usually less than what you could repair them for.
We can advise you at the end of the contract and would always suggest you ‘haggle’ with any charges.
We send you out a finance proposal form via Docu-Sign. Once that is filled out and returned we liaise with the finance company to get funding in place.
Whether any supporting information is needed will depend on your credit and the type/ value of vehicle you’re after.
Auto Accept – The system has accepted the proposal automatically from doing a quick credit search.
Referred to underwriter – system passes it an actual person who runs credit searches.
Supporting info required – this may include up-to-date accounts, 3 month bank statements, management accounts and possibly a directors guarantee
Finance declined – unfortunately, this funder has said no. We will discuss options with you on whether we try another funder or appeal the current decision.
Finance approved – we’re good to go and order your car!
