Buying a van outright? Cute. But here’s another move: Business Contract Hire (BCH) - you lease it, use it, and hand it back.
Which visionary dreamt this up? We have no idea, but it makes sense for millions of business people worldwide. Essentially, it’s a zero drama kind of concept.
Breaking Down Business Contract Hire
In plain English: BCH is a long-term rental for businesses. You don’t buy the vehicle. You don’t sell the vehicle. You don’t cry about depreciation. You lease it, use it, and return it like that hotel towel you definitely didn’t steal.
In plain English: BCH is a long-term rental for businesses. You don’t buy the vehicle. You don’t sell the vehicle. You don’t cry about depreciation. You lease it, use it, and return it like that hotel towel you definitely didn’t steal.
- Pick a vehicle (car or van - we do both).
- Decide on an initial rental fee (often 1-12 months).
- Agree on a contract (usually 12 to 48 months).
- Choose your mileage allowance & any other inclusions such as maintenance.
- Pay a fixed monthly fee. No surprises.
- Return it when your time’s up.
- Choose another brand new one on a new deal that suits you
That’s it. No resale headaches. No ‘having to make do with the vehicle you’ve got’.
Why Van-Running Businesses Love BCH
For any business to choose vehicles on BCH there has to be wins. Those wins could come in the form of:
Fixed Monthly Costs
Predictable outgoings results in a happy finance team. BCH gives you a set monthly cost, usually with road tax included and sometimes maintenance and servicing too. All your accountant hears is: ‘controlled spending’ which, in return means they’ll pester you less.
Anti-Depreciation
Ever watched a brand-new van lose 40% of its value in 18 months? With BCH, that’s not your worry. You’re just renting it. Let the leasing company take the depreciation hit while you drive with a certain level of smugness.
Tax Efficiency
If you’re VAT registered, you can reclaim 50% of the VAT on the finance, and 100% on the maintenance. Also, lease payments can be classed as an allowable business expense. Translation: less tax. More money for things that matter.
No Selling Required
When the contract ends, you toss the keys back and walk away. You’re not having to deal with time wastes off Facebook Marketplace or tyre kickers off Gumtree.
But What’s the Catch?
Admittedly, BCH isn’t perfect. Nothing is. Here's the bits that nobody likes.
- You don’t own the vehicle – obviously. You’re renting, not investing.
- Mileage caps – exceed them and you'll pay per mile.
- Wear and tear rules – if you treat the vehicle like a dodgem, expect end-of-contract charges.
- Early termination - prepare for a financial slap.
Is BCH the same for Vans & Cars?
Yes, there’s no discrimination according to the vehicle type. If it's got four wheels all terms apply.
We get that some companies want cars for client schmoozing, vans for lugging tools or electric vehicles to flex their green credentials. Whatever you need, there’s a BCH deal out there with your name on it.
BCH or OAP?
BCH is seen as the new age. If you’re still insisting on buying your fleet outright, you might also enjoy fax machines and dial-up internet. And that's absolutely fine.
Need help finding the right BCH van deal?
Summit Drive’s got you, and your fleet, covered.
No jargon. No BS. Just straight-talking van leasing that works for your business.
Summit Drive sees Business Contract Hire as freedom, flexibility, and focus. You focus on growing your business while letting someone else worry about how much a used van’s worth in 3 years time.