 |
| |
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| Car Leasing Bargains
can provide finance for all makes & models
of car or light commercial vehicle (up to
3.5 tonne), |
| we provide new or “nearly
new” vehicles to businesses and private
individuals assessing your requirements and
gearing our |
| funding methods towards your
individual vehicle needs |
| |
| Please click on a funding
method for more details: |
| |
| |
>What is Contract
Hire? |
| |
>What is Personal
Contract Hire? |
| |
>What is Personal
Contract Purchase? |
| |
>What is Finance
Lease? |
| |
|
What is Contract hire |
| |
| For - Limited Companies, PLC's, Sole Traders, Partnerships
Contract hire offers most of the benefits of
ownership without |
| the hassle. In essence, it
is like hiring a car but over a longer
period and is a very popular choice for VAT
registered |
| businesses as this is a VAT beneficial finance package, one regular payment covers all cost for an agreed period and mileage. |
| |
| You pay a fixed amount every month for an agreed term which should
usually cover the cost of the vehicle to an
agreed |
| mileage threshold, there is
an excess mileage charge which is agreed at
the start of the contract, charged at a
pence per |
| excess mile rate for every
mile over the agreed contract mileage. |
| |
| Vehicle Excise Duty (Road Fund License).
is usually included but roadside rescue,
maintenance and relief vehicle provision |
| are options that can be
added and charged to the rental payment. |
| |
| You would normally pay a
deposit equal to one or three months rentals
- VAT is due on rentals and deposit, but may
be |
| partially or fully
reclaimable depending on your circumstances. |
| |
| The finance company is responsible for the disposal of the vehicle at the
end of the contract and you do not have the
right to |
| purchase the vehicle, however you can extend the hire if you wish. |
| |
|
What is Personal Contract hire (PCH) |
| |
| For - Private individuals opting out of the company car scheme
Personal contract hire is similar to
business contract |
| hire in most cases you can
just add the VAT to Business contract hire
prices - some finance house's charge an
additional |
| doc fees for PCH
(Underwriting for PCH is very strict & can takes up to 48 hour
for approval) |
| |
|
What is Personal Contract Purchase (PCP) |
| |
| For - Private
Individuals, Sole Traders and Partnerships A
fixed amount is paid every month for an
agreed term and |
| mileage. This type of contract is essentially a purchase agreement where the monthly
payment is kept low by a Minimum |
| Guaranteed Future Value (MGFV) set by the finance company. |
| |
| At the end of the contract
you will have three options: |
| |
| Hand the vehicle back to the finance company (an excess mileage charge may be incurred if you have exceeded the stated |
| mileage) and additional
costs maybe charged if the condition of the vehicle does not reflect normal wear and tear. |
| |
| Purchase the vehicle at the MGFV regardless of market value. at this point you would own the vehicle outright. |
| |
| Part-ex or sell the vehicle. If the vehicle's value exceeds the MGFV set at the beginning of the agreement you can usually |
| use this amount towards a
deposit on your next contract or sell the
vehicle and anything over the MGFV is your
to keep. |
| |
| You can also incorporate
maintenance & servicing in this rental. |
| |
| The deposit required could
be as little as £99.00 up to a maximum of
30% of the vehicles total invoice value. A
high deposit |
| could reduce the monthly rental cost significantly. |
| |
|
What is Finance Lease |
| |
| For - Limited Companies, PLC's, Sole Traders, Partnerships
Finance lease is ideal for VAT-registered
companies who |
| want to handle the
administration of they're vehicles and have
the asset shown on balance sheet. |
| An alternative choice for
high mileage users where the mileage &
condition constraints of contract hire would
prove unsuitable, |
| this is especially so for
most commercial vehicle users |
| |
| This is a Vat-beneficial
finance option where the hirer can choose to
pay the entire cost over the agreed lease
period, plus an |
| interest charge (full payout
lease), or pay lower monthly rentals during
the lease period with a final payment based
on the |
| anticipated resale value of
the vehicle (spread rental with a balloon). |
| |
| Note: with a full payout
lease there is no final balloon payment as
this is incorporated in to the monthly
payment, so you do |
| not take the risk of a short
fall at the end of the contract if the
vehicle fail to meet the expected price. |
