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On this page you will find
details regarding Finance or Leasing Cars and Commercial Vehicles
(Vans) by either Hire Purchase (HP) – Lease
Purchase (LP) – Leasing – Vehicle
Supply HIRE PURCHASE
(HP) – LEASE PURCHASE (LP) The
most basic method of purchasing a car, simply borrow the money using the
vehicle as security. Pay the whole amount back over any period up to 60
months at a fixed rate of interest. Variable rates of interest are
available for larger purchases. Lease
Purchase is simply a Hire Purchase agreement where an amount of capital
(Residual Value) has been offset until the end of the agreement. This will
have the effect of reducing the payments over the period. Similar to
Personal Contract Purchase, however, there is no guarantee on the final
payment so you won’t have the option of handing the vehicle back at the
end of the contract. Ideally
suitable for funding cars that you will keep for many years or specialist
items, commercial vehicles etc. Also for commercial vehicles if you are
VAT registered. Only
available to business users. This
is a basic rental agreement where the whole value of the vehicle is paid
back over the period, with or without a Residual Value. At the end of the
agreement the vehicle is sold by you, on behalf of the leasing company,
and a percentage of the sale proceeds, usually 90-100% are retained by you
as a ‘rebate on the rentals already paid’. For leases without a
residual value at the end of the period they can usually be extended for a
nominal ‘peppercorn’ annual payment. Contract
Hire is a specialist type of leasing agreement where a third party (the
Contract Hire Company) guarantees to take the vehicle back at the end of
the agreement and is hence taking the risk on its future value. Leasing
has all the VAT and tax benefits of Contract Hire but you bear the risk on the vehicles future value as you can’t
hand it back at the end. Leasing can be perfect for vehicles that are of a
specialized nature, particularly commercials that could give your company
good service for longer periods. Good
for non VAT registered businesses buying commercial vehicles as it has the
effect of spreading the VAT payable over the period of the contract.
Sometimes referred to as a Finance Lease. As we have access
to the best ‘fleet’ purchasing terms on new vehicles we are able to
assist with straight vehicle supply on most makes. ‘Fleet’ terms are
the discounts given to the major fleet purchasers by the vehicle
manufacturers. As these companies buy a huge number of cars they are able
to get much better savings than a retail customer could negotiate and we
are able to pass these savings on to you, our client. We also have direct access to defleeted company cars, demonstrator vehicles, daily hire cars etc. at trade prices. You can combine all these prices with any of the funding packages available.
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