Personal Contract Hire (PCH) and Business Contract Hire (BCH) are similar car lease agreements but with some key distinctions. PCH is designed for individual use. You cannot use the car for business purposes. The finance funder registers the car in their name. You are responsible for maintaining the car according to the lease agreement (fair wear and tear expected). The lease price typically includes VAT (Value Added Tax) which is not recoverable by the individual. For registered businesses, BCH can be used by employees for both business and personal journeys. The car is registered in the business's name. The business is responsible for maintenance, insurance, and road tax. VAT can be reclaimed by most VAT-registered businesses, effectively reducing the overall lease cost. BCH may require a business credit check or a personal guarantee from a director with a good credit history, especially for new businesses.