Contract Types
Contract Hire
Contract hire is a
vehicle-leasing contract for sole traders, partnerships, limited
companies and PLC’s. The Hirer benefits by paying a single fixed rental
each month. This includes road fund licence and, if required, service
and maintenance. Rental periods typically vary between 18 and 48
months, there is no large initial payment to be made as deposits are
usually equivalent to 1 or 3 months rental. VAT is payable on rentals
but is partially reclaimable by VAT registered companies. At the end of
a contract the vehicle is returned to the lender at the agreed contract
mileage with no final or balloon payment to be made. For details of
Finance Lease & Contract Purchase, please contact this office.
Sale And Leaseback
If
your company already has vehicles that have been purchased in the past,
we can arrange to buy the vehicles off you to give a capital injection
to the business. The vehicles would then be leased back to you at
competitive rates.
Personal Contract Purchase
Purchase
Personal contract purchase (PCP) is available to every one subject to
status. PCP provides a new or used vehicle for a pre-determined period,
normally 24 - 48 months. Like contract hire the contract has a low
initial payment, usually 3 monthly payments, followed by fixed payments
for an agreed period with an agreed mileage. At the end of the contract
period there is a guaranteed future value that you have the option of
paying to take ownership of the vehicle, or you can hand back the car
without penalty.
Personal Contract Hire
Personal
Contract Hire (PCH) has been specifically designed for people opting
out of a company car scheme or joining a new company that provides a
company car allowance, instead of a company car. A PCH contract
includes road fund licence and, if required, service and maintenance.
Rental periods typically vary between 24 and 48 months, there is no
large initial payment to be made as deposits are usually equivalent to
1 or 3 months rental. At the end of a contract the vehicle is returned
to the lender at the agreed contract mileage with no final or balloon
payment to be made.
Non Status/Sub Prime Contracts
These
are available for new start companies and businesses or individuals
that have experienced credit problems in the past. Initial payments are
typically 6 times the monthly rental.
Lease Purchase
Lease
Purchase is essentially Hire Purchase with a balloon payment at the end
of the contract. Lease Purchase offers lower monthly payments than
normal hire purchase. Instead, at the end of the agreement, you can
make a final lump sum payment (or ’balloon’) to own your car.
It’s
fixed rate finance - but with a lower fixed monthly outlay since you
defer repayment of some of the borrowing. At the end of the agreement
options include car purchase, refinance, part exchange or resale.
The
deposit you pay is flexible - from as little as £99. The remaining
balance, plus fixed interest, is repaid in equal instalments over an
agreed period (12-60 months) plus a final balloon payment.
Hire Purchase
Hire
purchase is a simple, straightforward way to spread the cost of buying
a new car. It is fixed rate finance - with a fixed monthly payment. The
deposit you pay is flexible - from as little as £99. The remaining
balance, plus fixed interest, is repaid in equal instalments over an
agreed period (12-60 months).