Funding options explained

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.



For more information on any of the above just give us a call on 01246 83 4505, we'll be more than happy to help.