What are the pros and cons of Business Car Leasing and Personal Contract Hire?

Here’s a clear comparison of the pros and cons of Business Car Leasing and Personal Contract Hire (PCH):

Business Car Leasing

Pros:

• Often offers tax benefits for businesses, such as reclaiming VAT and deducting lease payments as business expenses.

• Allows companies to provide vehicles for employees without large upfront costs.

• Flexible contract terms tailored to business needs.

• Keeps fleet updated with newer models without owning the vehicles.

Cons:

• Usually restricted to businesses; not available to private individuals.

• Contracts can include mileage limits and penalties for damage, which must be managed carefully.

• Early termination can be costly or complicated.

• Personal use restrictions may apply depending on the agreement.

Personal Contract Hire (PCH)

Pros:

• No large upfront payment—just fixed monthly rentals for the contract term.

• Maintenance packages are often available, simplifying vehicle upkeep.

• Flexibility to choose contract length and mileage to suit personal use.

• At the end of the contract, you simply return the car without worrying about resale.

Cons:

• You never own the vehicle, so there’s no option to buy it at the end.

• Mileage limits apply, with charges for exceeding them.

• Early termination fees can be expensive.

• Excess wear and tear penalties may apply when returning the car.

If you’d like, I can help you decide which option suits your situation better or provide more detailed information on either leasing option!