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Home > Finance Application
Finance Application
Hire Purchase
If ownership is a priority, then this is a cost-effective way to purchase your vehicle.- Low Deposit - in many cases Vat Only
- Flexible Repayment period - up to 60 months
- Fixed Monthly Repayment aids budgetary control and cashflow
- Monthly repayments are vat free
- VAT deposit reclaimable (VAT registered customers)
- 100% of interest charges can be offset against taxable profits
- Vehicle is an asset on your balance sheet and benefits from writing down allowances
- Year 1 - 50% Year 2 - 25% Year 3 - 25% etc...etc...
- Ownership of vehicle will pass when the agreement is completed
- Ideal for those who require ownership of the vehicle
Finance Lease
This facility provides the customer with the benefits of ownership with minimum deposit and maximum flexibility
- Deposits are usually the equivalent of three rentals. but can be any amount whatsoever
- Repayment period of up to 60 months
- VAT is paid monthly, then claimed back quarterly (if VAT registered)
- Rentals are 100% allowable against taxable profits
- Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
- Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
- Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility with no mileage clauses
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