Our Rates are competetive starting at 5.5% APR
Hire Purchase
Most of our Hire Purchase is done through Lloyds TSB Blackhorse. This type of finance is best suited to a private individual who wishes to own the vehicle at the end of the contract. The deposit is negotiable but usually in the region of 20% of the value of the new vehicle and may include a Part Exchange. Payments of the remainder are then calculated over a 1,2,3,4 or 5 year period. Finance documentation needs to be accompanied with the production of both original parts of your Driving Licence and two proofs of address i.e. Telephone Bill, Bank Statement. Without these the finance cannot go ahead. All finance documents need to be processed before you take delivery of your car.
Click Here For Proposal form for a Private Individual.
PCP
Personal Contract Purchase: This is a relatively new method of accessing the use of a new car. A small deposit is paid up Front usually £500. Then a monthly Rental is taken by Direct Debit from your account. The finance company actually buy the car then they rent it to you at a fixed price over a fixed period of time, usually 1 - 3 years. The contract can include Maintenance and Servicing. At the end of the period you hand the car back and providing that the car is in good condition and has not exceeded the mileage allowance then you have nothing more to pay. If you regularly change your car this is an ideal method of having the use of a new car without investing any of your capital. You may at the end of the term pay the 'Balloon' and keep the car.
Click Here For Proposal form for a Private Individual.
Example based on a Mazda 2 1.4 TS2 5Dr Hatch purchased Feb 04:
Cost Of Car £ 9,295
Initial Payment £ 500
Monthly Rental £ 187.46 X 35 Payments
Balloon Payment at end of Period £ 3,815 - Either pay balloon and keep car or return car.
Contract Hire
One monthly rental can cover all servicing, maintenance, batteries, breakdown service, tyres, road fund licence, exhausts and loan vehicles. The Contract Hire company buys the car from the Dealer and then 'Hires' it back to you the customer for a fixed monthly rental. At the end of the term, say 24 months you may return the car to the Contract Hire company and they will dispose of it. The customer has no further responsibility providing they have returned the vehicle within the mileage specification and in good condition.
Benefits to a company include that some or all VAT may be reclaimed. No unexpected repair or servicing bills. Capital can be invested in the business rather than vehicles. Disposal is handled by the Contract Hire company. Different packages available to suit different employees. The rentals maybe offset against tax subject to restrictions, plus the maintenance part of the rental.
There is still an option to purchase the vehicle at the end of the contract.
Click here for Finance Proposal for a Ltd Company
Click Here for a Finance Proposal for a Sole Trader
Lease Purchase
This is a Business form of Hire Purchase with many repayment options. Lease purchase is treated as an outright Purchase for Tax purposes, the customer gains ownership after the final payment. The lease is run over a number of years the company paying monthly by direct debit.
Benefits include: that the vehicle is classed as an asset on the balance sheet, there is no VAT on payments, monthly payments are smaller than some other methods of vehicle usage, vehicles may be depreciated, easier budgeting.
Example based on Vauxhall Vectra 1.8 LS5Dr Hatch purchased in Feb 04:
Cost Of Car £ 11,895
Initial Payment £ 685.74
Monthly Payment £ 228.58 X 35 Months
Balloon Payment £ 3,037.02 at end of term.
|
Contract Hire |
Leasing |
Lease Purchase |
Hire Purchase |
Bank Loan |
Cash Payment |
| Outright ownership at end of contract |
No |
Maybe |
Yes |
Yes |
Yes |
Yes |
| Residual Value Risk |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
| CAT payable - and recoverable - on rental (limited to 50% from 1/8/95) |
Yes |
Yes |
No |
No |
No |
N/A |
| VAT payable - and recoverable - on maintenance (all) |
Yes |
Yes |
N/A |
N/A |
N/A |
N/A |
| Interest element tax deductible |
No |
No |
Yes |
Yes |
Yes |
N/A |
| Monthly payments tax deductable |
Yes |
Yes |
No |
No |
No |
N/A |
| Maintenance package available |
Yes |
Yes |
No |
No |
No |
N/A |
| Accelerated tax relief |
Yes |
Yes |
No |
No |
No |
No |
| Cashflows benefits |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Low initial payments |
Yes |
Yes |
Yes |
No |
No |
No |
| Vehicle disclosed as Fixed Asset on Balance Sheet |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
| Writing - down Allowances (Depreciation) available |
No |
No |
Yes |
Yes |
Yes |
Yes |
|
)
