# Business car leasing, company cars on contract hire

> Browse 11 company cars on business contract hire, from a guide £500 a month ex VAT, saloons, estates, SUVs and electric models for directors, employees and pool use. Business contract hire runs up to 12 months and is for UK limited companies and LLPs. FleetMe supplies the vehicle: your agreement is with us, and we confirm the vehicle, term, mileage and monthly rental in writing.

Source page: [https://fleetme.co.uk/cars](https://fleetme.co.uk/cars)

## Who this page is for
The guide prices below are **business contract hire** rentals for **limited companies and LLPs**, over a term of up to 12 months. If you are an individual or a sole trader, the product is **sole trader vehicle hire** of up to 24 months, quoted separately — [ask us](https://fleetme.co.uk/enquire) and say which applies to you.

## Company cars by type

| Body type | Models | From (guide, per month ex VAT) |
|---|---|---|
| Cars | 11 | £500 |


## VAT and tax on a company car lease
Where a leased car has any private use, a VAT-registered business can typically reclaim 50% of the VAT on the rental; the maintenance element of a lease is usually recoverable in full when it is itemised separately (HMRC input-tax rules). A company car provided for private use is also a taxable benefit for the driver, and electric cars currently attract a much lower benefit-in-kind rate than petrol or diesel, check the current HMRC rate for the tax year, and confirm your own position with your accountant.

## Why a business leases rather than buys
- The monthly cost is fixed for the whole contract, so it forecasts cleanly.
- Capital stays in the business instead of sitting in a depreciating asset.
- Resale risk sits with us, not with you, you hand the car back at the end of the term.

- [Business van leasing](https://fleetme.co.uk/business-van-leasing)
- [Fleet leasing](https://fleetme.co.uk/fleet-leasing)
- [Guides](https://fleetme.co.uk/guides)

[Browse all company cars](https://fleetme.co.uk/cars) · [Ask for a written quote](https://fleetme.co.uk/enquire)

## Frequently asked questions

### What documents do you need for a business van lease?

Company name and number, trading address, and three to six months of business bank statements. Filed accounts or management accounts if you have them, and your VAT number if you are registered. For each director: full name, date of birth and three years of address history, plus licence details for whoever drives. Newer companies should add any signed contract or purchase order.

### Can my company lease a car for an employee?

Yes. Company cars run on business contract hire in the same way as vans: fixed term, agreed mileage, fixed monthly rental, handed back at the end. Tell us who will drive and roughly how far they travel, and we will build the quote around that.

### How is the van delivered?

Delivered to your business address anywhere in England and Wales. Lead time depends on the vehicle: something already in stock moves quickly, while a factory order takes as long as the manufacturer takes. Your quote states the expected timing, and we will tell you if it changes rather than leaving you to chase.

### How does VAT work on a business car lease?

It is more restrictive than on a van. VAT recovery on car rentals is generally limited where the car is available for private use, whereas a commercial vehicle used for business is generally fully reclaimable; an itemised maintenance element is treated separately again. General information only, your accountant should confirm your own position.

### Is there a tax charge on a company car?

A company car available for an employee’s private use creates a benefit in kind, calculated from the vehicle’s list price and its CO2 emissions, with electric and low-emission cars taxed far more lightly. The rates change from year to year, so ask your accountant or payroll for the current figure before you choose the car.

### Do I need to insure the van myself?

Yes. Insurance is not included in the monthly rental. You will need fully comprehensive cover in the name of the business, in place before delivery, with FleetMe recorded as the owner. Send us the certificate and we can get the vehicle on the road.

### What condition does the vehicle need to be in when it goes back?

Fair wear and tear is expected, a working van picks up marks. The measure is the industry standard published by the BVRLA, which sets out what is acceptable and what is chargeable, so it is worth reading a few months before your agreement ends. Tidy up small damage in good time and there are rarely surprises.

### Can I lease more than one vehicle?

Yes. Several vehicles can run on one agreement or on separate ones, and the assessment looks at the total commitment rather than each vehicle in isolation. Tell us the whole plan up front, including anything you expect to add later, so the affordability is assessed once rather than three times.

### Can I lease a vehicle in my own name rather than the company’s?

Business contract hire is for businesses, limited companies, LLPs and partnerships. If you want a vehicle in your own name, or you trade as a sole trader, tell us when you enquire and we will explain what applies to your situation before anything is agreed.

*FleetMe supplies the vehicle and the agreement is with us. Limited companies and LLPs take business contract hire; sole traders take vehicle hire. Either way the longest term is 12 months. Quotes are indicative until your vehicle, term, mileage and rental are confirmed in writing. Individuals and sole traders are served by vehicle hire of up to 12 months, not by contract hire. Prices shown are guide prices, not quotes or offers.*