Leasing a vehicle vs financing for UK businesses
22 Dec 2025
22 Dec 2025
12 min. read
| Leasing (BCH) | Financing (HP/PCP) |
|---|---|---|
Ownership | No | Yes (after final payment) |
Upfront cost | Low (3-6 months’ payments) | Medium (10-20% deposit) |
Monthly payments | Lower | Higher |
Mileage limits | Yes (eg 10,000 miles/year) | Sometimes (PCP only) |
Maintenance | Often included | Your responsibility |
Depreciation risk | None | Yours |
Balance sheet | Off-balance-sheet (operating lease) | On-balance-sheet (asset and liability) |
End of contract | Hand the car back | More flexible – own it, trade it in, or return it |
Flexibility | Easy to upgrade | Less flexible |