BUSINESS CONTRACT HIRE (BCH) EXPLAINED
What is business contract hire (bch)?
Business Contract Hire (BCH) is designed for small to medium businesses and fleet managers who would like to drive a new Genesis without the risks and impacts of buying the vehicle outright.
BCH offers businesses fixed monthly costs and no depreciation risks. Our vehicles come with a full manufacturer's warranty and the manufacturers' comprehensive breakdown cover.
At the end of this period you are not responsible for the disposal. You simply return the car without further cost, providing it has not exceeded the agreed mileage and the condition is reflective of its age and mileage. There is no option to own the car at the end of the contact.
HOW BUSINESS CONTRACT HIRE (BCH) WORKS
1: PAY AN ADVANCED RENTAL
Pay an initial upfront rental, the amount is dependent on the monthly rentals, usually the equivalent to 1 to 12 monthly rentals.
2: SET YOUR TERMS
Set your contract length and mileage terms to suit your needs.
BCH agreements can run from 18 to 48 months in duration.
3: PAY MONTHLY RENTALS
Pay fixed monthly rentals for the agreed contract length. The rentals include Road Fund Licence with servicing and maintenance options available for an additional cost.
4: RETURN YOUR VEHICLE
At the end of your contract you are not responsible for the disposal, you simply return the vehicle without further cost, subject to mileage terms and vehicle condition.
There is no option to own the vehicle at the end of the contact.
OTHER THINGS YOU SHOULD KNOW:
- All agreements include road fund licence, full manufacturer's warranty and the manufacturer's comprehensive breakdown cover.
- Business Contract Hire agreements can run from 18 to 48 months in duration.
- Both excess mileage and vehicle condition charges may apply.
- VAT registered companies are able to reclaim 50% of the VAT on the finance rental where employee private use is permitted, or 100% if the vehicle is solely for business use.
- Maintenance of the vehicle can be included in your monthly rental as an added option. 100% of the VAT on the maintenance rental can be reclaimed.
- Business Contract Hire is available to Limited Companies and Limited Liability Partnerships.
- There is no option to own the vehicle at the end. As with all our finance products, there are no arrangement or purchase fees.
DOWNLOAD OUR BCH PRODUCT GUIDE
Our product guides are downloadable as a PDF via the link below.
FREQUENTLY ASKED QUESTIONS
Yes, BCH is an excellent option for fleet management, allowing businesses to lease multiple vehicles with tailored agreements for each. Click below to find out more.
Business Contract Hire is only available for corporate entities, e.g. limited companies, PLCs or limited partnerships.
Fixed priced servicing and maintenance options are available with most contracts for an additional cost. These are charged as part of your monthly rentals.
Insurance is not included in BCH, fully comprehensive insurance will need to be arranged separately.
When applying for finance you will be required to supply certain personal information, as well as to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for further proof of your address dated within three months of the submission of your application. An acceptable proof of address includes a bank or credit card statement, utility or council tax bills, or mortgage statements.
VAT registered companies are able to reclaim 50% of the VAT on the finance rental where employee private use is permitted, or 100% if the vehicle is solely for business use.
| Account Management Fees | Empty |
|---|---|
| Copy statement of account | £12.00 |
| Change of payment due date* | £25.00 |
| Change of vehicle registration plate | £30.00 |
| Collection of vehicle upon voluntary termination of agreement | £70.00 |
| Transfer of agreement fee** | £150.00 |
| Arrears Management Fees | Empty |
|---|---|
| Monthly arrears fee*** | £35.00 |
| Internal collection agent visit | £50.00 |
| External collection agent visit | £250.00 |
* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Genesis Finance reserves the right to amend these fees at any time.
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