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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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