Benefits of leasing

– Avoid depreciation pit-falls of purchasing a brand new vehicle.

– Affordable and fixed monthly costs.

– Maintenance packages can be included in the monthly costs. – Fixed mileage contracts.

– The cost of motoring is more predictable.

– No fear of the warranty expiring.

– Drastically reduced deposit costs.

– Wide choice of leasing and financing methods allowing you to tailor design your motoring to suit you.

Finance Lease Expanded

This system is aimed at VAT registered businesses, companies, partnerships, sole traders, individual businessmen etc. The finance company actually owns the vehicle from the beginning of the contract and keeps it at the end.

Advantages

– 50% VAT can be claimed on cars, and 100% on commercial vehicles.

– With the option of a “Balloon” payment at the end of the contract, monthly payments can be reduced even further.

– Generally low monthly costs that can include maintenance.

Disadvantages

– Interest rates can vary.

– The business can never own the vehicle.

– The car will be sold on to a third party. – Risks involved with operation of the vehicle, as with any contract. The finance company will calculate the monthly payment on the basis of four factors: 1

  1. – The showroom price of the vehicle. 2
  2. – The length of the contract. 3
  3. – The agreed annual mileage. 4
  4. – The projected “Residual Value” of the vehicle.

The balloon payment at the end does not always equal the residual value of the vehicle as it can vary according to the amount of the initial payment, the make and model of the car and what the particular finance company will allow. Once the contract has ended and the vehicle has been sold on to a third party, if the sale price is more than the agreed balloon payment, then the finance company will refund some of the proceeds back to the company that took out the finance in the first place. Some leasing companies may also allow you to take out a secondary rental contract if you want to keep the car for another term.

Hire Purchase

Effectively, this is where the buyer takes a loan either through their bank, a finance company or through the dealership from where the vehicle will be purchased. Finance companies tend to offer a higher rate of APR as compared to banks, but dealerships are proving to be the most flexible and competitive, particularly the more established companies such as VW, BMW and Mercedes that have “in house” finance departments.

Advantages

– Finance over a longer period to keep the monthly payments low. – Lower deposit, more room for negotiation.

– APR is fixed throughout the duration of the agreement.

– Once the contract ends the vehicle is totally yours to sell or keep.

– You can settle the finance agreement before its end, usually with no penalty.

– If the vehicle is purchased through hire purchase for use by a VAT registered company, the VAT could be claimed back.

– Once the agreement has ended and the vehicle is owned, it can be shown as a company asset.

– There are no worries with regards to a leasing company’s “Fair Wear & Tear” conditions and the horrendous cost that this can incur.

Disadvantages

– At the end of the agreement the vehicle is yours, but so will be its depreciated value.

– You will only be the registered keeper, not the owner. Once the agreement is completed, then you will be the legal owner.

– Late payments will definitely and promptly affect your credit rating.

Hire Purchase – The Process

Once the appropriate vehicle has been found, a finance application is completed at the dealership and then sent off to a finance company at which point you will be credit checked. If successful, the finance company will pay the dealership and you will pay the finance company on the agreed monthly basis. You will then be the registered keeper of the vehicle and the finance company will be the legal owner. On the day the final payment is made you will be the legal owner of the vehicle.

 

For £199+ VAT, for a single vehicle, we will:

Effectively, this is where the buyer takes a loan either through their bank, a finance company or through the dealership from where the vehicle will be purchased. Finance companies tend to offer a higher rate of APR as compared to banks, but dealerships are proving to be the most flexible and competitive, particularly the more established companies such as VW, BMW and Mercedes that have “in house” finance departments.

Advantages

– Finance over a longer period to keep the monthly payments low. – Lower deposit, more room for negotiation.

– APR is fixed throughout the duration of the agreement.

– Once the contract ends the vehicle is totally yours to sell or keep.

– You can settle the finance agreement before its end, usually with no penalty.

– If the vehicle is purchased through hire purchase for use by a VAT registered company, the VAT could be claimed back.

– Once the agreement has ended and the vehicle is owned, it can be shown as a company asset.

– There are no worries with regards to a leasing company’s “Fair Wear & Tear” conditions and the horrendous cost that this can incur.

Disadvantages

– At the end of the agreement the vehicle is yours, but so will be its depreciated value.

– You will only be the registered keeper, not the owner. Once the agreement is completed, then you will be the legal owner.

– Late payments will definitely and promptly affect your credit rating.

Hire Purchase – The Process

Once the appropriate vehicle has been found, a finance application is completed at the dealership and then sent off to a finance company at which point you will be credit checked. If successful, the finance company will pay the dealership and you will pay the finance company on the agreed monthly basis. You will then be the registered keeper of the vehicle and the finance company will be the legal owner. On the day the final payment is made you will be the legal owner of the vehicle.

 

Once we receive your vehicle we will:

Effectively, this is where the buyer takes a loan either through their bank, a finance company or through the dealership from where the vehicle will be purchased. Finance companies tend to offer a higher rate of APR as compared to banks, but dealerships are proving to be the most flexible and competitive, particularly the more established companies such as VW, BMW and Mercedes that have “in house” finance departments.

Advantages

– Finance over a longer period to keep the monthly payments low. – Lower deposit, more room for negotiation.

– APR is fixed throughout the duration of the agreement.

– Once the contract ends the vehicle is totally yours to sell or keep.

– You can settle the finance agreement before its end, usually with no penalty.

– If the vehicle is purchased through hire purchase for use by a VAT registered company, the VAT could be claimed back.

– Once the agreement has ended and the vehicle is owned, it can be shown as a company asset.

– There are no worries with regards to a leasing company’s “Fair Wear & Tear” conditions and the horrendous cost that this can incur.

Disadvantages

– At the end of the agreement the vehicle is yours, but so will be its depreciated value.

– You will only be the registered keeper, not the owner. Once the agreement is completed, then you will be the legal owner.

– Late payments will definitely and promptly affect your credit rating.

Hire Purchase – The Process

Once the appropriate vehicle has been found, a finance application is completed at the dealership and then sent off to a finance company at which point you will be credit checked. If successful, the finance company will pay the dealership and you will pay the finance company on the agreed monthly basis. You will then be the registered keeper of the vehicle and the finance company will be the legal owner. On the day the final payment is made you will be the legal owner of the vehicle.