Finance options

We are able to provide a full range of Finance options to assist you in purchasing your vehicle. Our partnerships with several of the major lenders enables us to offer very competitive rates over periods of 2 - 5 years.

Deposits can be tailored to your means as we do not simply offer "take it or leave it" deals.

FUNDING METHODS

There are FOUR main ways in which BUSINESS USERS can acquire and run Company Vehicles ( Other than outright cash purchase )... and there are benefits and drawbacks to each method that must be fully understood before the right package to suit individual requirements is selected.

CONTRACT HIRE

Quite Simply this is just a way of hiring a vehicle of your choice over a specific period ( up to 5 years ). Monthly payments are fixed for the duration of the contract. Usually only available on NEW or Pre Registered vehicles.

Rental payments are geared to an annual mileage and can include all maintenance, tyres, batteries, breakdown cover and annual road tax. You would be responsible for fuel, insurance, topping up oils and any damage. Excess mileage over the agreed would be chargeable

Rentals are allowable as a revenue expense. You have no depreciation or operating cost risk or any disposal hassles. VAT is reclaimable at your normal recovery rate. Funding is "off balance sheet". Ownership remains with the contract hire company.

LEASING

Can be a highly tax efficient way of obtaining the use of a vehicle while retaining the benefits of ownership. Initial payments are usually low. Lease rentals are allowable as a revenue expense. The vehicles are shown on your balance sheet. You are funding the entire cost of the vehicle.

At the end of the lease period you can either extend the use of the vehicle by paying an annual peppercorn rental or dispose of the vehicle on behalf of the leasing company and retain most of the sale proceeds as a "rebate of rentals".

You would be responsible for all other costs such as servicing and repairs. VAT is paid monthly on the rental charge.

HIRE PURCHASE

A "traditional" method of funding providing vehicle ownership upon final payment. You are funding the entire cost of the vehicle. Like Leasing, all costs and risks are your responsibility, including the residual value.

Writing down allowances and interest relief are claimed to reduce profits tax. The vehicle is shown as an asset on your balance sheet with Outstanding HP as a liability.

The full VAT element of the purchase price is paid in addition to the agreed deposit at the start of the agreement.

All operating costs ( including disposal ) would be your responsibility.

Low rate Finance is available from time to time on selected vehicles.

LEASE PURCHASE

Basically the same as Hire Purchase but with the payment profile structured differently. The initial payment would be calculated as a number of monthly payments rather than as a % of the sale price.


BALLOON PAYMENTS can be incorporated into Lease & Purchase facilities, reducing the monthly charge and leaving you a final payment to be made that would hopefully be covered by the residual value of the vehicle.

You can also take out various payment protection plans and insure against insurance loss.

Tha above outlines the various methods of funding available to vehicle purchasers. Your accountant or financial advisor should be consulted in order to decide the best option to take.