Contract Hire or Leasing

This is an operating lease over a set period of time with no residual concerns or disposal issues as you just hand the car back. You can include adding maintenance, relief vehicle and breakdown cover to the contract. Road fund licence is usually included for the term of the contract.

And because we take care of everything - you can concentrate on running your business. All you have to do is arrange for Fully Comprehensive insurance and pay for petrol.

With a low initial deposit & fixed monthly rentals, you are able to budget your vehicle costs.

Contract Hire is an off balance sheet lease which improves the gearing ratio in your accounts. The rentals can be offset against taxable profits for maximum tax efficiency.

If your business is VAT registered you can also reclaim 50% of the VAT on the finance element of the rentals and 100% off the service payments of your contract.

Finance Lease

This provides many of the benefits of ownership combined with valuable tax advantages for your business.

Rentals can be paid monthly, quarterly, or annually through the lease period, which is structured to the useful life of the vehicle (normally 2-4 years). You can choose between paying the entire cost plus charges over the lease period or agreeing to pay a final 'balloon' payment based on the anticipated resale value of the vehicle allowing you to tailor the rentals to match your business's cash flow.

The car is classed as an asset for balance sheet purposes during the agreement and the rentals can be offset against taxable profits.

If your business is VAT registered you can also reclaim 50% of the VAT on the finance element of the rentals.

When the car is sold at the end of the lease the sale proceeds, less a nominal sum, will be refunded to you as a rebate of rentals. This rebate will attract VAT.

Hire Purchase

The 'traditional' way to purchase a car is by Hire Purchase. After paying the initial deposit the balance plus interest charges is repaid over an agreed period by fixed, equal monthly payments.

The agreement can be from 1 to 5 years and when all the payments have been made you become the owner of the vehicle.

There is no VAT added to the payments and the interest charges are tax deductible. The car is classified as a company asset, which allows it to be written down against taxable profits.

The VAT is not recoverable on the purchase price of the vehicle.