Personal Vs Business Leasing

If you’re new to leasing, then it may be confusing to understand the difference between personal car leasing (Personal Contract Hire) and business car leasing (Business Contract Hire). Luckily, both options still see the great benefits of leasing with fixed low monthly payments, no depreciation worries, and you get to drive a brand new car (or van) every few years!

Whether you’re looking for a new car or van, we have plenty of lease deals to choose from.

What's The Difference Between Personal & Business Leasing

Personal and business leasing are quite similar, so to help you understand which option is for you, we go over the main differences.

The name on the lease

The name you use on the agreement is the first difference. If you take out a personal car lease then the agreement will be under your own name. However, for a business lease, it will be the company’s name on all the paperwork.

The documents

The documents that you provide for each are different as the documents for business leasing should all relate directly to your company. This will include business bank statements, the company address, registration number and other specific company details to be approved by the finance company. With personal leasing, on the other hand, you will need to provide your ID, proof of address and other personal documents. With both options, the funder will require a credit check before approving any lease deal.

The tax benefits

Business leasing is VAT recoverable, so you can claim 100% of the VAT back if the vehicle is solely used for business use, or 50% if the car is used for both business and personal use. Personal car leasing will include VAT in all of the monthly payments, so the cost of business leasing can be significantly cheaper. This is one of the biggest benefits of business car leasing, and there is no denying that the low monthly rentals are a great way to drive a brand new vehicle for a minimal expense.