Business Contract Hire

Question 1

Does a Business Contract Hire (BCH) agreement include any final payments?

ald · Accepted Answer

Your monthly rental payments cover the cost of your agreement, so there won’t be any fixed large final payment due.

Your vehicle will need to be returned in a good condition and, if damage is beyond 'fair wear and tear', you’ll be charged for the damage. You can find further information about [the condition your vehicle needs to be returned in here](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/end-of-contract/preparing-your-vehicle-for-collection/).

Your agreement will include a mileage allowance. If you exceed this agreed mileage, you’ll need to pay an excess mileage charge. This charge is calculated based on a pence per mile rate, which you can find in your agreement. You can [request a copy of your contract here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/copy-of-contract/)

You can find information about other [end of contract charges here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/end-of-contract/charges/)

Question 2

What do I needed to do at the end of my Business Contract Hire (BCH) agreement?

ald · Accepted Answer

You’ll need to contact us to arrange an end of contract collection at least five working days before the end of your agreement. You can find out more about [returning your vehicle here](targetSelf:http://https://www.aldautomotive.co.uk/en-gb/faq/q/end-of-contract/).

Question 3

Who is the owner of my Business Contract Hire (BCH) vehicle?

ald · Accepted Answer

We’ll remain the owner of the vehicle for both regulated and non-regulated BCH agreements throughout your agreement.

Question 4

What is a Business Contract Hire agreement?

ald · Accepted Answer

BCH is a leasing agreement where you pay a monthly rental amount for the hire of the vehicle.  Unlike a credit agreement, there’s no contractual right to purchase the vehicle.

There are two types of Business Contract Hire agreement:

*Regulated Business Contract Hire (BCH) is available for:*

- Sole traders
- Small partnerships (3 or less partners)

*Non-Regulated Business Contact Hire (BCH) is available for:*

- Private limited companies
- Large partnerships (more than 3 partners)
- Limited liability partnerships
- Public limited companies
- Charities
- Local authorities

A BCH agreement may be suitable for VAT-registered businesses where the VAT that the rentals attract can be claimed back from His Majesty's Revenue and Customs (HMRC).

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