How does BCH finance work?
A BCP agreement allows businesses to finance a new or used vehicles with an agreed minimum down payment and a mileage allowance. The minimum down payment must be paid in advance and is usually equal to three monthly instalments.
The mileage allowance is agreed in advance, the minimum being 10,000 miles per annum and a maximum of 40,000 miles per annum. An excess mileage rate is charged if you exceed the mileage allowance. You will be charged for this when your contract ends.
Business Contract Hires is subject to VAT, 50% of which can be claimed back. When the agreement is over, the vehicle must be handed back to the dealership in good condition. If the vehicle has sustained any damage, you will incur extra costs to cover any repairs needed.