Firstly, a business lease (business contract hire) is essentially where your company leases a car or van. This may be an ideal option for people who intend to use their vehicle for business and personal use.

Business car leasing is used by VAT registered companies, limited companies, partnerships and sole traders. A business contract hire agreement can be used for both vehicles that are to be used solely for business and company cars that will be used by employees out of work hours too.

Below we have outlined just a handful of benefits to leasing a business car. Please read our complete business car leasing guide for more info.

• Tax Benefits - if your company is VAT registered you can claim a portion of the VAT back. Typically, you may be able to claim 50% VAT back on the monthly rental payments and 100% VAT back on the maintenance payment.
• No Expensive Capital Outlay - Leasing business vehicles enable you to maintain working capital for your business. 
• Flexible Repayment - Invoices can also be fixed dependent on your cash flow requirements for quarterly, pause periods and advance rentals.
• Pay less tax – With business contract hire agreements, the cost of the monthly payments can be offset against taxable profits to reduce the amount of tax the business pays.

Personal leasing (personal contract hire) is a type of vehicle leasing for individuals who wish to lease a vehicle solely for personal use. 

A PCH agreement allows you to effectively ‘borrow’ a new car from a leasing company and pay a reliable, fixed monthly payment for the service. You may also be able to take out a servicing and maintenance package, allowing you to pay a little more each month to cover the costs of servicing, repairs and breakdown costs. This will ensure that your monthly vehicle expenses are as consistent as possible, providing you with better financial security.

At the end of the agreement the car is returned to the leasing company and you have the option to take out a new personal contract hire agreement on either the same car or a different car.

Below we have outlined just a handful of benefits to leasing a personal car. Please read our complete personal car leasing guide for more info.

• Higher Value Vehicle - Leasing allows you to drive a higher value car which you may not be able to afford if you were to buy the car.
• New Car Every Few Years - depending on the length of your lease agreement, you get to drive a new car every few years.
• Fixed Monthly Budget - your monthly payments are fixed throughout your contract and you also don't have to worry about the depreciation of the vehicle.
• Less Hassle – At the end of your lease, you can simply hand the car back, avoiding the stress of selling the vehicle and the expense of depreciation.