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Finance Information

Contract Hire

Business Contract Hire can remove both financial and administrative burdens from your company. It can deliver a tax efficient form of funding which eliminates risk and eases cash-flow, allowing increased focus on your core business activities. The monthly rentals will be derived from your specific term and mileage requirements.

Key benefits include:

  • Fixed monthly costs allowing accurate cash flow forecasting.
  • Low initial outlay.
  • No risk on disposal.
  • Off balance sheet method of funding.
  • Includes delivery and collection of vehicle.
  • VAT reclaimable on finance rentals (50% on cars and 100% on commercials).
  • Optional inclusion of maintenance (100% of VAT reclaimable on finance element of rental).
  • Includes RFL for the duration of the contract.

Personal Contract Hire

Personal Contract Hire has similar benefits to Business Contract Hire although is for an individual as opposed to a business. Again it removes the additional administration associated with other funding methods or outright ownership and the monthly rentals will be dictated by your personal requirements from your vehicle in relation to term and mileage. Personal Contract Hire can be particularly attractive to employee's 'opting out' of company car schemes where they have a monthly allowance. The range of vehicles to choose from is often greatly increased and liability for 'Benefit In Kind' taxation is removed from not driving a company vehicle.

Key benefits include:

  • Fixed monthly costs allow accurate budgeting.
  • Low initial outlay.
  • No risk on disposal.
  • Includes delivery and collection of vehicle.
  • Optional inclusion of maintenance (Spread the cost of essential servicing and maintenance).

Finance Lease

Finance Lease provides another funding method requiring minimal initial outlay for the acquisition of new company vehicles. It is particularly suited to vehicles which may have an unpredictable high mileage over the agreement term or vehicles which have a 'heavy usage'. Vehicles of this nature would incur excess mileage charges on Contract Hire if the pre-determined mileage budget were to be exceeded and possible end of contract re-charges in relation to vehicle condition.

Key benefits include:

  • Fixed monthly costs allowing accurate budgeting.
  • VAT reclaimable on rentals.
  • At contract end, once you have paid the balloon payment you have the option to go into 'secondary period rental'. This typically is one monthly rental per annum.
  • Upon payment of the balloon rental and disposal of the vehicle to a third party, you retain in the region of 95% of the sales proceeds.

Contract Purchase & Personal Contract Purchase

These are similar to Hire Purchase agreements, however the pre-determined balloon payment which is calculated based upon the term and mileage is optional. This then removes any 'Residual Risk' from you with your agreement or gives you complete ownership of the vehicle for a pre-determined figure. This can also be popular for companies who are not VAT registered or individuals who want to know the exact figure for ownership.

Hire Purchase

This is a vehicle purchase agreement for both private individuals and businesses who require outright ownership of their vehicle. Deposits can be varied and balloon payments can be built in (This is typically referred to as Lease Purchase or HP with a balloon), it is worth noting that balloon payments on this method of funding are NOT optional (As with Contract Purchase & Personal Contract Purchase) and must be paid.