Business User Finance
Our specially trained Business User Team can help identify the most suitable method of funding cars used for your company today.
You can click on the links below for information on various forms of finance, or view our Car Tax calculator.
Hire Purchase
Lease Purchase
Contract Hire
Leasing
Car Tax Calculator (opens in a new window)
Hire Purchase
What is it?
Hire Purchase is an agreement to hire a vehicle for a fixed period and to take ownership of the vehicle when the final payment is made.
How does it work?
With Hire Purchase you pay a deposit to suit your budget and then the balance (including interest) is split over an agreed period, normally between 12 & 60 months, and paid monthly. Full ownership of the vehicle is transferred to you once the final monthly payment has been made.*
What are the benefits?
- You pay a fixed re-payment with fixed interest rates over an agreed period
- Payment terms are quick and easy to arrange and can be set up to suit most budgets
- The initial deposit can be low
- You own the vehicle at the end of the agreement once all payments have been made
*An Administration Fee with 1st payment and Option to Purchase Fee with final payment may be applicable. The above facilities are available subject to status; a full written quotation is available upon request. Only available to individuals over the age of 18 and a guarantee may be required. The above information is provided as a guide only, please ask for full details.
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Lease Purchase
What is it?
Lease Purchase is a form of Hire Purchase, which you will find particularly useful if you have a non-VAT registered business, as unlike leasing monthly re-payments are exempt from VAT. It also offers you the benefit of reduced monthly payments, fixed over an agreed period.
How does it work?
Firstly you choose your ideal car and agree on a repayment period. Based on this, we will agree a fixed number of monthly payments (a number of which will be required in advance depending on the length of the repayment period you've chosen) and one final payment, which is based on the vehicle's anticipated future value. At the end of the agreement and provided you've fulfilled all the terms, you pay the option to purchase fee and the vehicle is yours*.
What are the benefits?
- Reduced initial capital outlay
- Reduced fixed monthly payments
- Monthly re-payments are exempt from VAT
- Vehicle can be treated as a balance sheet asset
- You own the vehicle at the end of the agreement
- Finance charges are allowable against taxes
- Reduces your tax liability
The above information is provided as a guide only, please ask for full details.
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Contract Hire
What is it?
Contract Hire is used mainly for companies with vehicle fleets that do not wish to tie up their capital in owned vehicles, and are VAT registered. It provides you with use of a vehicle over an agreed period for a pre-determined fixed rental. This can include all regular motoring expenses. At the end of the agreement the vehicle is simply returned to the leasing company.
How does it work?
A finance package is put together to suit the individual needs of the customer. The following can be included in the cost of Contract Hire:
- Specified Maintenance & Servicing
- Recovery Service & replacement vehicle (if required)
- Road Tax
- Replacement Tyres
A monthly rental charge is calculated, in advance, for the use of the vehicle based on the items included and the expected mileage. At the end of the contract the vehicle is simply returned to the dealer and, providing the vehicle is in an appropriate condition and hasn't exceeded the agreed mileage, there will be nothing more to pay.
What are the benefits?
- You do not have to worry about the vehicle losing value during the contract period, as you do not own the vehicle
- This plan provides fixed cost motoring. If regular servicing and maintenance costs are included in the contract then there will be no unforeseen maintenance bills
- Your capital is not tied up in owned vehicles
- Payments and terms can be arranged to suit you
- Although your monthly repayments include VAT, they are calculated based on the ex-VAT price of the vehicle less the residual value. As a result you are making significant savings when compared to the VAT you would have to pay on the full purchase price of a vehicle.*
*We recommend you seek advice from your accountant on how your choice of vehicle finance will relate to your tax position. The above information is provided as a guide only, please ask for full details.
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Leasing
Leasing is designed for VAT registered businesses.
With leasing you are effectively renting the vehicle for an agreed period, you do not own it.
What are the benefits?
- You get full use of the vehicle without actually owning it
- You pay a fixed amount each month
- VAT registered businesses can claim back some of the VAT charged on Leasing payments
- For VAT registered businesses, rental payments on leasing may also be allowable expenses and can be offset against profits for tax purposes
- A range of payment profiles are available
- You retain the net resale proceeds (although there will usually be an administrative charge payable to the finance company)
The above information is provided as a guide only, please ask for full details.
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