As a member of a leading financial institution we are able to offer any method of supplying and funding vehicles. Apart from Finance Lease - our most popular funding method - we are able to offer Contract Hire, Lease Purchase and PCP.
Finance Lease
Finance lease is ideal for customers who want to have all the benefits normally associated with owning a vehicle whilst maximising tax efficiencies. Most importantly you should note that, for income tax purposes, finance lease is still classed as a hire agreement, which means that you get 100% tax relief on your payments to offset against your taxable profits.
You simply have to agree a monthly payment and contract period which can include an acceptable final payment which will have the effect of keeping your payments to a minimum. UK Vehicle Contracts will then purchase the vehicle of your choice. Payments are made monthly by Direct Debit thoughout the contract term. You can terminate the agreement early although there are of course early settlement charges but they are not as harsh as they tend to be on contract hire.
Finance Lease is very flexible and at the end of the contract you have several options.
You can sell the vehicle to a third party, and use the sale proceeds to make the final balloon payment if it has been included.
However most of our customers choose to part exchange the vehicle, and take delivery of a new one as you retain 98% of the part exchange value. This allows you to use any surplus monies as your deposit on the new vehicle.
Alternatively you can keep the vehicle for as long as you want as long as you pay an annual nominal sum called a peppercorn rental to the leasing company. Even this payment is 100% allowable against taxable profit.
Contract Hire
A popular choice for VAT-registered companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included.
With this VAT-beneficial financing package, one regular rental payment covers all risks, including costs of depreciation and disposal, for an agreed period of time and mileage. Road Fund Licence is included, roadside rescue, maintenance and relief vehicle provision are options that can be added and charged to the rental payment.
Lease Purchase
This is for Business users only and is basically Hire Purchase with an agreed balloon payment incorporated which has the effect of reducing monthly payments.
Benefits of Finance Lease
- 100% of payment allowable against taxable income
- You choose your deposit (min £499.00)
- VAT recoverable on monthly payments
- Non-VAT registered customers welcome
- Fixed monthly payments
- Accurate monthly budgeting
- Minimum capital expenditure
- Fixed interest rate
- Any make or model of commercial vehicle available
- Free delivery of your vehicle
- On-going advice/support
- No vehicle disposal problems
- Option to keep the vehicle