Search across a range of deals
Searching with us is quick and easy. You can view a wide range of business leasing deals all in one place.
What is business car leasing?
Business car leasing – also known as Business Contract Hire (BCH) – enables companies to hire new vehicles for work purposes in the UK.
Firms pay an initial upfront payment that acts as a deposit and thereafter pay a fixed monthly price, with each contract length typically lasting two to four years.
Once the contract has finished, the vehicles are returned. The company can lease new models or walk away.
Businesses have the option to lease a fleet of vehicles, with typical fleet sizes of between three and 10 cars.
How does leasing work for a company car?
Business car leasing works in a similar way to personal car leasing. And the whole process can be done online:
Search for your ideal car. There are multiple ways you can find a car which fits the needs of your business, such as searching for the make/model or by monthly cost
Choose your contract terms. You’ll be able to see the initial rental cost based on how long you want the car for and the number of miles you’ll drive each year
Credit check and delivery. Once your firm has been approved for the lease, you can agree a time, date and location for delivery, which could be your home or business premises
What are the different types of business car leasing?
The most common type of business lease agreement in the UK is Business Contract Hire (BCH). The leasing company takes responsibility for any depreciation over the agreed contract term, and the business hands the car back at the end of the contract.
Contracts are fixed for the term and may incur a penalty charge if the business wants to hand the vehicle back early.
It's important to make sure that the contract is based on the right mileage to avoid excess mileage charges, and to maintain the vehicle to a reasonable standard to avoid penalty charges for excessive damage at the end of the contract.
How to choose the best business contract hire deals
When deciding on a business car lease deal, you want a contract that matches your requirements. Factors to consider include:
-
Company budget
Think about the available budget and consider your business's tax position. Speak with an accountant for specific advice for your business.
-
The right make and model
Choose carefully. Maybe you need a lot of storage space, or a fuel-efficient vehicle to cover long distances. Consider how it affects staff retention, incentives, and customer's first impressions.
-
Be realistic on mileage
While additional miles on a business lease contract might cost more, it’s important to accurately assess how much the lease vehicle will be used to avoid high extra mileage fees at the end of the term.
-
Use an expert
MoneySuperMarket’s partners at Autotrader Leasing source deals from a panel of leading lease providers in the UK. Helping you source the most cost-effective deal for your business needs.
What happens at the end of the business car lease contract?
At the end of the contract the vehicle is handed back to the leasing company. The company can then choose to walk away or take out a new lease for new vehicles.
The business doesn’t have the option to buy the lease car at the end of the contract.
What are the pros and cons of leasing a company vehicle?
What are the pros and cons of leasing a company vehicle?
-
Pros
There may be opportunities to reclaim tax or other accounting benefits for the business. Check with your accountant whether leasing is the best option for your business.
For company car drivers who choose lower emission vehicles – in particular electric vehicles - there may also be tax benefits from reduced benefit in kind taxation. You can check the tax position at:
Company drivers of both cars and vans are driving new reliable vehicles with the latest safety features.
New vehicles give a great first impression to customers and prospective clients
-
Cons
Businesses may choose to work to a policy or budget which means that drivers may not always get the make and model of car they would choose
For company car drivers who have a higher emission vehicle their benefit in kind taxation may be high. You can check the tax position at:
Company car drivers don’t own the vehicle so if they leave the business the car stays with the company.
Equally for a business is an employee leaves and is not replaced the business retains the vehicle until the end of the contract or may have to pay penalty fees to return it early.
Why compare business car leasing with MoneySuperMarket?
We’ve teamed up with our partner Autotrader Leasing to bring you a wide range of great business leasing deals from across the UK market. Offering all available makes and models of cars, vans and pick-up trucks.
Our expert says…
Business car leasing can be a smart move for firms looking to keep costs predictable while driving reliable vehicles that are fit for the job. Fixed monthly payments make budgeting easier, while tax benefits and VAT savings can reduce the overall expense. It also means less hassle around depreciation or resale value, freeing businesses to focus on growth.
Tim Heming Personal Finance Expert
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Compare business car leasing with MoneySuperMarket
It’s easy to compare business car leasing deals with MoneySuperMarket. We’ve teamed up with Autotrader Leasing to bring you the best deals on the market.
-
It’s quick and easy
MoneySuperMarket has teamed up with partner Autotrader Leasing to bring you the best business car leasing deals on the market. Search quickly all in one place online.
-
Select business lease
Pick the business use option and view vehicles by make and model, your monthly budget or preferred contract term. View in-stock cars if you need the vehicle quickly.
-
Compare and apply
Compare quotes to find the perfect deal for your firm’s needs, with road tax, warranty and vehicle delivery all included in the price.
Who are Autotrader Leasing?
Leasing from the name that you know and trust, Autotrader have 50 years’ experience in all things automotive.
Partnering with the widest network of trusted providers, Autotrader Leasing searches the market to help you find the most competitive offers on all makes and models of vehicle.
With fixed monthly pricing to help you manage your monthly budget and transparent pricing, what you see is the price you pay.
Browse, choose and apply online or call one of the expert team. Autotrader Leasing manage the process for you so you can order from your sofa and have a delivery to your door.
Is a business car lease tax deductible?
Business car leasing payments can be claimed as a tax-deductible expense for corporation tax purposes. The amount of tax which can be claimed against business profits will depend on the CO2 emissions of the car you’re leasing.
Vehicles with CO2 emissions of more than 110g/km aren’t fully tax-deductible, so you’ll only be able to claim for tax relief on percentage of the car lease costs.
You won’t be able to claim capital allowances for a lease car, as these only apply to owners of a vehicle wanting to deduct part of the vehicle’s value from profits before paying tax. In this instance, capital allowances would fall with the finance provider.
Who is responsible for insuring the leased vehicle?
Most business lease deals won’t include insurance, so it’s up to you as the finance holder to arrange comprehensive cover for your leased vehicles.
Remember to arrange the insurance policy to begin from the date that the car is delivered. You can ask the leasing provider for the registration number of the vehicle in order to get a more accurate quote too.
What happens if I crash a business lease car?
You generally follow the same process you would with a collision for a personal vehicle. Business lease providers will generally insist on fully comprehensive car insurance before allowing you to sign for a lease car.
This means that not only will any third party be covered in the case of an accident, but your car is also insured in the event of a collision or other loss. The terms of the insurance should mean it is replaced with a like-for-like vehicle.
Is personal leasing better than business leasing?
Business car leasing is cheaper than personal car leasing because VAT-registered businesses can claim up to 50% of the VAT on the monthly payments. Advertised business contract hire agreements won’t include VAT, whereas personal lease deals include it in the monthly price.
Remember that any personal miles you travel in a business lease car will need to be deducted from your work mileage. They’ll then be subject to the same VAT you’d pay on a personal agreement.
Can a start-up business still lease a car?
Both new and existing businesses can lease a car providing they have the right documents and pass a credit check to ensure they can afford the monthly payments.
You’ll need details of the business, company director information and business bank details.
Start-up companies with little or no financial history will probably also need some more details to prove that they can make the monthly payments. This will likely include:
Three months of business bank statements and/or audited accounts
Management accounts for your business
A director’s guarantee promising to pay the remaining lease payments if the company defaults on them
How does business car leasing differ from personal car leasing?
The major difference between a personal contract hire and business car leasing is that business contract hire is only available to companies. With a business lease you’re leasing on behalf of the company, whereas with personal lease you’re leasing for personal use.
Another important difference is that with business contract hire, your firm can claim back some, or even all, of the VAT on the lease agreement. So, this can help you make greater savings in comparison to personal car leasing.
How does company-car leasing differ to a company car allowance?
Company-car leasing is when you have access to a brand-new car every few years that your company leases for you. A company car allowance on the other hand, is money paid to you, on top of your salary that you can use to buy or maintain a car.
What is the typical term for business car leasing?
Business car leasing contracts tend to be anything between two and four years. The length of your contract will affect the price of your monthly rental. A longer lease will mean lower fixed monthly payments, although you can end up paying more overall.
Are there used car options available for business car leasing?
Yes, you can lease used cars for business car leasing.
What cars are popular for business car leasing?
Popular cars for business leasing tend to be well-known, top quality car brands such as Audi and Tesla.
Other popular brands for business car leasing include Peugeot, Toyota, Nissan, Jaecoo, Skoda, Hyundai, Vauxhall, vehicles in Volkswagen ID range, as well as the Cupra Born and Qashqai electric cars.
What happens if I exceed my mileage limit?
Typically, business car leasing providers will charge a rate per mile for excess mileage. The rate varies but can add up if you’re not careful.
Can I get a business car lease as a sole trader?
Yes, you can get a business car lease as a sole trader. The only exception to getting a business car lease is if you’re a self-employed taxi driver because of the high mileage your vehicle will do.
Get Money Calm
MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.
Take control of your credit score by checking and improving it for free with Credit Score
Never overpay again with Energy Monitor, our energy monitoring service
Over 50 ways to Get Money Calm
So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.
But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.
Reviewed on 21 Apr 2026 by
