Business Electric Car Leasing (BCH)
Business Contract Hire (BCH) is a common way for UK organisations to run electric vehicles with predictable costs and minimal ownership risk. Instead of purchasing vehicles outright, businesses lease electric cars for a fixed monthly rental over an agreed term, then return them at the end of the contract. This approach can support cash‑flow planning and removes exposure to depreciation and resale values.
For fundamentals, see: how EV leasing works and our guide to personal vs business EV leasing. You can also compare personal EV leasing (PCH) if you’re deciding between routes.
How Business EV Leasing Works
- Choose the vehicle and terms. Select the EV, term (often 24–48 months), and mileage allowance.
- Agree fixed monthly rentals. Payments are typically fixed for the duration of the agreement.
- Use the vehicle under the contract. The vehicle remains the provider’s property while your business operates it.
- Return the vehicle at contract end. No resale process and no depreciation risk.
Why Businesses Choose BCH
- Predictable monthly vehicle costs for budgeting
- No exposure to resale values or depreciation
- Access to modern EVs and technology
- Simple renewal cycle for fleets and company cars
- Optional maintenance packages may be available (provider‑dependent)
Costs and Considerations
When comparing business EV lease deals, consider the full cost structure: initial rental, monthly rental, contract term, annual mileage, and any maintenance options. VAT treatment and reclaim rules depend on vehicle use and business circumstances.
Business EV Leasing and Tax Considerations
Electric vehicles may have different tax treatment compared with petrol or diesel vehicles, including Benefit‑in‑Kind (BIK) considerations for company cars. Tax rules vary and can change. EVLeaseCompare.com provides general information only and does not provide tax or financial advice. For guidance on your specific circumstances, consider speaking to a qualified accountant or tax adviser.
What Happens at the End of a Business EV Lease?
At contract end, the vehicle is returned to the provider and typically inspected for fair wear and tear. Any excess mileage (if applicable) is handled according to the provider’s terms. Standard BCH agreements do not include an obligation to purchase the vehicle.
BCH FAQs
In many cases, yes—subject to provider criteria and credit assessment.
Insurance is usually not included unless explicitly stated by the provider.
Yes. Applications are subject to provider approval and credit/affordability checks.
Some providers offer optional maintenance packages. Availability and coverage vary.
EVLeaseCompare.com is an independent comparison platform. We compare offers from third‑party brokers and providers. Prices and availability can change and are subject to provider approval and credit checks. Information is for general guidance only.