Finance Information Pages

Business Purchasing on finance made easy.

Purchasing a vehicle on finance can lead you to many different options. We’ve pieced together an explanation of the benefits:

1. Contract hire benefits

Fixed monthly payments - easier budgeting comes as standard. Flexible agreement terms - variable terms and mileages available. Vehicle maintenance option - include servicing and maintenance in your rentals to help spread the cost. Eliminate risk of asset depreciation - this finance removes vehicles from your balance sheet. For a set monthly payment; servicing, tyres and the tax disc can be taken care of in your finance package. At the end of the agreement, you simply hand back the vehicle. Or you could negotiate a convenient extension to the contract.

2. Finance lease benefits

Low up-front costs - for just a small outlay, you can use the vehicle immediately. Flexible repayment structure - rental payments can be tailored to match your cash flow. Fixed or variable interest options - you decide which suits you best. Tax advantages - VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rules apply to cars). Monthly payments can be matched to your cash flow. At the end of this commercial leasing agreement, the vehicle is sold and you receive the major share of the proceeds. As the finance company is the vehicle owner, they claim the available writing-down allowances and reflect this in your monthly payments.

3. Hire purchase benefits

Total control - the vehicle is yours at the end of the agreement. Flexibility in your repayments - makes for easy budgeting. Fixed or variable interest options - it’s your decision which is best for you. Tax advantages - normally you can claim writing-down allowances and perhaps capital grants, while repayment interest may be offset against profits and VAT is usually reclaimable (special rules apply to cars).There is great flexibility with this type of vehicle finance. We can structure it in various ways, with a flexible deposit, fixed payments and perhaps a balloon final lump sum.

4. Contract purchase benefits

Fixed monthly payments - budgeting is easier when you know the costs in advance. Flexible agreement terms - variable terms and mileages available. Optional maintenance and added value services - can be included in the agreement. Guaranteed resale value - we will fix a vehicle resale value to take effect at the end of the agreement. Full ownership at end of contract - you own the vehicle once all pay-ments have been made. This finance may be preferable if you want to own your vehicles, yet avoid the risk of depreciating assets. A guaranteed residual value helps improve your cash flow during the agreement while making a vehicle more cost effective to buy.

We have a dedicated specialist team to make sure we meet your business vehicle needs. Contacts for each specific area of Business Hire are listed in the Business Team section.