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
