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24th Jul 2017 - We supply all makes and models at competitive prices. Please ring or email your exact requirements.

Funding methods explained

Business Contract Hire

This is the most popular choice for VAT and Non VAT registered companies that want minimum outlay and maximum control costs.

You hire the vehicle for an agreed period of time and pay a fixed rental calculated on the mileage you will cover over the full term. All payments are plus VAT of which 50% is recoverable on the rentals and 100% on the maintenance element if your company is VAT registered. Up to 100% of the monthly rental can be offset against profits.

Benefits:

  • Low Deposit
  • Low Monthly Payment
  • Maintenance Option
  • Release of Capitol
  • No Depreciation Risk
  • VAT on Rentals Reclaimable
  • Road Fund License included for the full contract length

Personal Contract Hire

This is a perfect option for private individuals who are opting out of a company vehicle.

You hire the vehicle for an agreed period of time and pay a fixed rental calculated on the mileage you will cover over the full term. It offers you peace of mind as you will pay regular fixed monthly payments which can include all maintenance costs for the vehicle for the duration of the contract. At the end of the contract term you hand the vehicle back to the finance company, no need to sell the vehicle privately or worry about its depreciated value.

Benefits:

  • Low Deposit
  • Low Monthly Payment
  • Maintenance Option
  • No Depreciation Risk
  • No Disposal Worries
  • No Final Payment
  • Road Fund License included for the full contract length

Finance Lease

Ideal for VAT registered companies who want to handle the administration of their own vehicles and be able to show the asset on their balance sheet.

The hirer can either chose to pay the entire cost of the vehicle over the agreed period, plus an interest charge, or pay a lower monthly rental with a final payment based on the anticipated value of the vehicle at that point.

Benefits:

  • Ownership at the end of the contract
  • Asset shows on the Balance Sheet
  • Fixed Monthly Costs

Contract Purchase

This is popular for companies with high value vehicles who would like the option to purchase the vehicle, but do not want the depreciation risks.

The vehicle is able to be shown as an asset on the balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back.

Benefits:

  • Ownership Option
  • No Depreciation Risk
  • No Disposal Worries
  • Hand Back Option
  • Interest Charges Claimable against Tax
  • Maintenance Option

Lease Purchase

Suitable for Non VAT registered companies that want eventual ownership of the vehicle.

A funding agreement where the company acquires ownership of the vehicle when all payments, including the final purchase payment have been made. Part of the capital cost of the vehicle payment may be deferred in to a balloon payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed leasing period.

Benefits:

  • Finance Charges and Fees can be offset against taxable profit
  • Business Capital not tied up in a depreciating asset
  • Finance not subject VAT
  • Writing down allowance
  • Ownership at the end of contract
  • Interest reclaimable against tax

Personal Contract Purchase (PCP)

For private individuals who want a hassle free and cost effective way to finance and maintain a vehicle. Also a good alternative for those opting out of a company vehicle.

A finance plan, where a proportion of the purchase cost of the vehicle is deferred to the end of the agreement. This large final payment is normally equal to the Guaranteed Future Value (GFV) removing future depreciation worries, making the monthly re-payments more affordable.

Benefits:

  • Enables customer s to afford vehicles they may be they couldn't otherwise consider
  • Removes the risk of unexpected depreciation
  • Optional Ownership
  • Flexible Deposits
  • Fixed Monthly Payments

Hire Purchase

You enter into an agreement over a fixed period at a fixed instalment. Upon payment of the final instalment the vehicle becomes yours. A balloon payment can incorporated as can low deposits.

Benefits:

  • Reduced Capital Outlay
  • Finance charges and fees can be offset against taxable profits
  • Ownership at the end of the contract
  • Business capital not tied up in a depreciating asset
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