Business leasing

Choosing the most cost effective method of funding a vehicle for your business can be a daunting task. We will listen to your needs and take into account your situation before recommending a funding option for you. Please call us for impartial advice about financing your vehicles - we are here to help.

Contract hire

Also known as an Operating Lease, the hirer uses the vehicle for a pre-determined period at a fixed monthly rental and then returns it at the end of the contract. The monthly cost will be calculated based on factors such as mileage, length of contract and vehicle maintenance costs (if maintenance is required). This makes budget forecasting simple as all operating costs, with the exception of fuel and insurance, can be included in the fixed monthly rental. With low initial payments, no depreciation risk and VAT reclamation advantages, contract hire is the number one funding choice for businesses running company vehicles.

Business contract purchase

In simple terms, this is a modified form of Hire Purchase where the customer agrees to a 'balloon' payment at the end of the contract. This is usually based on the estimated value of the vehicle at the end of the agreement. The balloon figure is notionally deducted from the invoiced purchase price of the vehicle. The remainder of the loan, plus all interest costs are used to calculate the monthly payments over the term. At the end of the agreement the customer can either return the vehicle to the finance company or purchase it for the balloon payment.

Finance lease

A Finance Lease offers similar payment and VAT reclamation terms to Contract Hire. The vehicle remains the property of the finance company throughout and can either be fully written down over the contract period or a 'balloon' payment can be agreed to prior to entering the contract. When the vehicle is sold or traded you would receive approximately 90% of the proceeds of the sale.

Hire purchase

This is the traditional method of spreading the cost of acquiring business assets. The client pays an agreed initial deposit and repays the balance, together with charges by fixed monthly instalments, over a period of up to five years. All risks and reward of ownership remain with the customer and capital allowances are available.