Vehicle Finance Options...
We offer several finance options to our customers, these are specially designed options to best suit the needs of each individual.
Each type of finance option is described below:
Contract HireA very popular choice for VAT registered businesses as this is a VAT beneficial financing package, one regular payment covers all (including maintenance if required) for an agreed period and mileage.
Road fund licence is included and all you do is insure it and put in the fuel. At the end of the term, you just hand back the vehicle or extend the hire, the choice is yours.
Personal Contract HirePersonal Contract Hire (PCH) gives the user a fixed equal monthly rental for a fixed contract term and mileage. At the end of the contract the vehicle is simply handed back. Popular with company car drivers who are given a car or mileage allowance instead of company vehicle. It allows the individual to make his/her own choice and arrangements. This will avoid benefit-in-kind taxation. At the end of the contract the vehicle is simply handed back and the finance company assumes the risk of the residual value of the vehicle meaning there is no need to worry about depreciation or selling the car on.
Finance LeaseIdeal for VAT registered businesses that want to handle the admin of their vehicles and have the asset shown on the balance sheet.
A VAT beneficial finance option were the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle
Contract PurchaseFor businesses with high value cars that would like the option to purchase the vehicles but do not want any depreciation risks.
The business acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet and can either retain ownership at the end of the contract or hand the vehicle back.
Lease Purchase/ Hire PurchaseFor non-VAT registered business or individual that want eventual ownership of the vehicle.
A funding agreement where ownership is acquired when all the payments, including the option to purchase have been made. Part of the capitol cost of the vehicle payment may be deferred into a balloon payment at the end of the agreement, the anticipated value of the vehicle. If ownership is not important and the business is VAT registered, the best value for money is Contract Hire.
Personal Contract PurchasePersonal Contract Purchase (PCP) is by far the most popular method of funding your vehicle when taking a Cash for Car option.
It is essentially a purchase agreement where the monthly payment is kept low by the implementation of a Guaranteed Future Value (GFV).
The GFV is stated at the outset of the contract and is determined by your annual mileage. At the end of the contract term, you have three options:
1) Hand back the vehicle to the finance company.
(An excess mileage charge may be incurred if you exceed the stated mileage).
2) Purchase the vehicle at the GFV value.
(Regardless of market value. We can arrange a re-financing package if required).
3) Part-exchange the vehicle.
(This is by far the most popular option as it allows you the possibility of taking equity from the difference between the part-exchange and GFV figure on the vehicle. This amount can be used as a deposit on your next vehicle).
See the chart below to see which vehicle finance method best suits you...
+At end of contract with financing products.
*Only 50% of the VAT relating to the finance element is recoverable. 100% if light commercial. 100% of the service element VAT is recoverable.
**Road fund licence is provided for the first year only.