Manufacturers
Which Finance is best for you?
Hire Purchase
If ownership is a priority then this is a cost-effective route to purchasing your vehicle
- Low Deposit - Vat Only
- Flexible Repayment period - up to 60 months
- Fixed Monthly Repayment aids budgetary control and cashflow
- Monthly repayments are vat free
- VAT deposit reclaimable (VAT registered customers)
- 100% of interest charges can be offset against taxable profits
- Vehicle is an asset on your balance sheet and benefits from writing down allowances: Year 1 - 50% Year 2 - 25% Year 3 - 25% etc...etc...
- Ownership of vehicle will pass when the agreement is completed
- Ideal for those who require ownership of the vehicle
Finance Lease
This facility provides the customer with the benefits of ownership with minimum deposit and maximum flexibility
- Deposits are usually the equivalent of three rentals. but can be any amount whatsoever
- Repayment period of up to 60 months
- VAT is paid monthly, then claimed back quarterly (if VAT registered)
- Rentals are 100% allowable against taxable profits
- Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
- Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
- Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility
- No mileage clauses
Contract Hire
Comprehensive, fixed cost solution where use of your commercial vehicle is important, but without the responsibilities of ownership. Essentially an operating lease with a full maintenance package. Mileage sensitive - be careful!
- Deposits are anything from 3 rentals upwards
- Total budgetary control - fixed costs, as long as you stay within the mileage
- Monthly repayments are subject to VAT - VAT recoverable
- Rentals are 100% allowable against taxable profits
- Fixed maintenance package to include services, repairs, tyres, dependant on contract type
- At the end of the contract, simply hand the vehicle back
- The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer - Ideal for VAT registered larger fleet operators.