The two most common ways for Businesses to finance a vehicle are Business Contract Hire (PCH) and Hire Purchase (HP). Below will allow you to explore both options and which one best suits your needs. At Croxdale Citroën​ Business Centre, we work with a variety of lenders to suit all circumstances. As part of our service we can organise the finance to suit you and settle any existing agreements you may have.

Business Contract Hire Agreement BCH)

Business Contract Hire enables a business to set monthly payments over an agreed period. This is in return for an individual car or a fleet.

BCH pays for depreciation of the vehicle. We will work out how much the car will be worth at the end of the agreement (guaranteed minimum future value),taking depreciation into account. Monthly payments are determined by the difference between the future value and initial value of the car being split over your lease length.

When the contract ends, the individual car or fleet is simply returned. There will be no further charges, given the vehicle is returned within the agreed mileage and wear and tear guidelines.

You will not be the registered keeper of the vehicle at any point.

Benefits of BCH:

  • Fixed monthly costs will allow the company to budget
  • No worries about depreciation and reselling
  • The vehicle or fleet size and value can be changed at the end of the contract according to the business’ needs

Hire Purchase Agreement (HP)

Hire purchase is ideal for customers who wish to own their vehicle outright at the end of the finance agreement with no balloon payment to make. The deposit is flexible, you can use your current vehicle as part exchange and use a deposit to allow you to make affordable monthly payments to suit your budget. The deposit and the length of the agreement can be adjusted to suit you. Hire purchase is typically available on both new and used vehicles.

1) Pay an initial Deposit

2) Pay fixed monthly payments

3) After all payments are made you own the vehicle