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  • Business Contract Hire

    A Simple and cost effective way to acquire any number of vehicles.

  • A simple and cost effective way to fund any number of vehicles


    • Flexible initial payment / deposit
    • Flexible payment profiles to suit you
    • Fixed monthly payments
    • No depreciation risk
    • Choose a new car every 2-5 years
    • Option to add maintenance for full budgetary control
    • Road fund license for the duration of the contract
    • Costs can be up to 100% allowable against corporation tax depending on its Co2 emissions, and you can reclaim 50% of the VAT on the monthly rental cost and 100% of the VAT on any maintenance elements
    • Only pay for fuel and insurance


    • You will never own the vehicle
    • Early termination can be expensive
    • No modifications can be made
    • Potential damage and over mileage charges (speak to us about this)
  • More Information on Business Contract Hire:

    Leasing a vehicle is a cost-effective way of driving a newer, safer and more technologically advanced car or van compared to what you may be able to achieve using other funding options such as Personal Contract Purchase (PCP).

    Leasing a vehicle (Contract Hire) is a non-ownership finance product, so you will never own the vehicle. It is the same as if you rent your house or have a mobile phone contract, you agree on your annual mileage and the term that you would like the finance over (generally 2-5 years) and pay a fixed monthly fee for this period of time.

    Deposit amounts / initial payments for contract hire vary from zero deposit upwards and have an effect on the monthly payments, normally displayed as 1,3,6,9 or 12 months upfront. For example, a 36-month contract advertised at 3+35 means that the deposit amount is 3 monthly payments upfront as your initial first month’s payment followed by 35 set monthly payments (for a £200 a month deal, you would pay £600 initial rental / deposit followed by 35 monthly payments of £200).

    The vehicle remains the property of the finance company for the duration of the agreement. You will be contacted by the finance company approximately 3 months prior to the end of the contract to find out what your plans are. Generally, they will then arrange an inspection and collection of the vehicle. Just like with renting a property, you will be required to pay if you damage anything (beyond normal wear and tear). You will also face additional charges should you exceed your agreed mileage allowance; this is charged at an agreed pence per mile rate and will be listed in your contract.

    The best part of leasing a vehicle is that there is no risk of depreciation to you. Leasing companies are often able to pay less for a brand-new car than individual buyers and also sometimes less than the dealerships as they buy many cars throughout the course of a year so are able to negotiate better discounts with the manufacturers. This means that these discounts are passed onto you, the customer, which means you may even be able to drive a better vehicle than you originally thought of.

    So, should you require any further information or have any questions around leasing your next vehicle then please contact us today on 01202 925853 or leasing@autoclub.co.uk

  • What is benefit in kind?

    Benefit-in-kind (or BIK) is a tax on employees who receive benefits or perks on top of their salary. If you have a company car for private use, you will have to pay a BIK contribution.

    Every car has a BIK percentage banding based on the CO2 emissions, and a P11D value, which is the list price, including extras and VAT, but without the first year registration fee and vehicle tax.

    Case Study

    A local business owner was looking to change his company car as he was paying over £700 a month benefit in kind and wanted to change his car to save him money. He had already tried a full electric car, which was apparent quite early on that it wasn't for him because he was worried about the range. We explored the option of a plug-in hybrid which he was concerned about losing power as he is coming out of the high performance estate car.

    However, this would give a very similar power output to his current car yet would save him personally £5,100 from his benefit in kind over the course of a year, this was a 3 year agreement. Also, because the company had funded the car using an ownership finance option (PCP), we managed to save the business over £4,000 a year as they couldn't claim as much capital back because of the CO2 emissions.

    The way we did this is explained below: Current car was purchased on PCP through the business and because of the high CO2 emissions they could only write off 6% reoccurring. We explored the plug-in hybrid, and as we could not get the 100 % first year allowances as the CO2 was slightly over the threshold. We then looked at contract hire where he could claim back 100% of the pre-VAT rental costs each month, which is where the savings were.

    This was just 1 car, imagine what this could look like for a large fleet customer?

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