Business Contract Hire explained

What is Business Contract Hire?

Whether you’re running a fleet of 'up to 50 cars' or a sole trader looking for a single vehicle, Business Contract Hire is the most popular way for businesses to acquire new company vehicles without owning them as it offers complete flexibility.

How it works

Once you have chosen your model and decided on your initial rental, you’ll need to customise both the agreement duration and annual mileage to suit your needs. This will affect the monthly rental payments.

Your rental payment period
Choose any period between 12 and 48 months
Mileage per year
Choose how many miles you expect to drive each year
Servicing
Choose to include a service, maintenance and tyres plan in your agreement

At the end of the contract:

At the end of your contract, subject to excess wear and tear or extra mileage charges, simply hand back the keys without having to worry about depreciation.

Cost of leasing your vehicle infographic

Benefits of Business Contract Hire with Volkswagen

Cost-effective
The low initial rental payment on a Business Contract Hire agreement makes it an attractive and cost-effective way of obtaining a new vehicle. Compared to how much you could pay for buying a car outright, the difference is significant.
Fixed monthly rentals
Business Contract Hire offers fixed costs for the term of your agreement, with maintenance and servicing added as an optional extra if required. For businesses, fixed vehicle costs make cash flow planning much easier.
Lower risk
With a Business Contract Hire agreement, the predicted level of depreciation is built into your monthly rentals, leaving any depreciation risk with us. Once your contract has ended, you simply return the vehicle.

Dedicated support
Every customer has a dedicated account manager to ensure that all administration is taken care of. We manage all documentation that comes with a vehicle, and any queries can be raised swiftly and easily on our Fleet Management Portal.
New vehicles on your fleet
After the agreement is finished, you can go straight into another Business Contract Hire agreement, meaning that your business and drivers can have the latest model from your preferred vehicle manufacturer.
Save on VAT
If you lease a vehicle exclusively for commercial use, you can claim back 100% of the VAT, and if the car is used as a private vehicle, you can still reclaim at least 50% of the VAT.