Funding Options
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