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Hire Purchase

  • The deposit is normally the VAT and Road Fund Licence
  • Repayment period from 36 up to 60 months
  • 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
  • End of the contact period the vehicle is 100% owned by you upon payment of the option to purchase fee (varies)

Finance Leasing

  • The deposit is the equivalent of 1 – 6 months rental in advance, plus the VAT on the deposit
  • Repayment period of between 24 and 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 cash-flow.
  • Vehicle sold or part-exchanged at end of contract with the hirer keeping 95% of the sales proceeds (ex. VAT). A great benefit with this form of van lease
  • Best for non-VAT registered business users looking for low initial deposit and maximum flexibility

Contract Hire

  • The deposit is the equivalent of 1 – 6months rental in advance, plus the VAT for the deposit
  • Van Contract Hire is essentially the same as Van Finance Leasing but is mileage sensitive, with the added bonus of a maintenance package, and without the hassle of having to sell the vehicle at the end of the contract.
  • Deposits are anything from 3 rentals upwards
  • Total budgetary control - fixed costs, as long as you stay within the mileage
  • Monthly repayments are subject to VAT - VAT recoverable
  • Rentals are 100% allowable against taxable profits
  • Fixed maintenance package to include services, repairs, tyres, dependant on contract type optional on van contract hire.
  • At the end of the contract, simply hand the vehicle back
  • The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer - Ideal for VAT registered larger fleet operators.
  • The contract is mileage sensitive.
  • There will be early termination costs if the contract does not go to the full term