Finance Lease

A hiring agreement whereby the residual value, maintenance and road fund license are the lessees responsibility although title in the vehicle can never pass directly between the lessor and lessee. On disposal of the vehicle up to 98% of the sales proceeds will be refunded to the lessee. Most suitable for lower mileage users who want the option of purchasing the vehicle at the end of the contract. Lement may be restricted if the customer is partly exempt.

Pros

1. Provides additional credit line.
2. Accurate cash flow forecasting from fixed terms and fixed interest rates.
3. Competitive monthly rates.
4. Usually includes more tax-efficient finance rate.
5. VAT is recoverable on the finance element subject to a 50% restriction where private use occurs.
6. 100% of the VAT on 'optional' services is recoverable. VAT on the optional services and on the remaining 50% of the finance.

Contract Hire

A hiring agreement which provides the use of a vehicle together with various services for an agreed period and where residual value, maintenance and road fund licence responsibilities are taken by the contract hire company. Ideal for higher mileage users and easy for budgeting purposes as all costs are known with exception of insurance and fuel.

Pros

1. No risks of ownership.
2. No capital investment.
3. Off balance sheet funding.
4. Tax efficiency.
5. Accurate cash flow from fixed payments.
6. Additional credit lines available.
7. VAT Partly reclaimable.
8. Lower monthly rentals.
9. Reduced internal administration costs.

Hire Purchase

A purchasing agreement whereby the residual value, maintenance and road fund licence are the responsibility of the purchaser, however, title of the vehicle is not transferred to the purchaser until all payments are made. The simplest form of finance agreement for those who want to own the vehicle at the end of the agreement.

Pros

1. Fixed Interest rate.
2. Fixed monthly payments.
3. Minimum capital expenditure.
4. Low deposits available.
5. Own vehicle at end of contract completion.
6. Free up alternative credit lines.
7. Fast Proposal response.
8. Interest allowable against tax.
9. On balance sheet funding.

Personal Contract Purchase (PCP)

A purchasing agreement whereby the maintenance and road fund licence are the responsibility of the purchaser, however, the residual value has a guaranteed minimum future value (GMFV) options of selling the vehicle and gaining the proceeds should you exceed the (GMFV). A suitable alternative for non business customers to Contract Hire. Very popular with ex-company car drivers.

You have the option of maintenance, service and repairs, insurance, payment protection plan. All PCP agreements will also include GAP insurance, European breakdown cover and delivery direct to your door.

At the end of your agreement you have a number of options: return your car to us and walk away with nothing more to pay; pay your Guaranteed Future Value (and the option to purchase fee) and keep your car or buy a newer car by trading in your existing one. You can even use what's left over from the sale of your car after paying your Guaranteed Future Value as a deposit.

Cash for Car

Are you a company car user wondering whether to take the cash option or the Car? Require free, unbiased advise regarding the choices available to you?

Get The Best From Your Allowance

Vehicle Management contracts can provide you with a one-stop service that committed to putting you, the customer first. We can provide written quotations on any make or model of vehicle. The advantage for this for you is that you don't have to trail from one dealership to another. Lets us research all the options for you, so that you can draw your own shortlists and then let us arrange your test drives for you.