Personal Contract Hire

Personal Contract Hire delivers all the benefits of a company car to the private individual. It calls for a fixed monthly rental, for a fixed contract term, arranged through a finance company. At the end of the contract term the car is handed back to the finance company. There is thus no need to sell the vehicle privately, or worry about its value.

Personal Contract Purchase

For private individuals who want a hassle-free and cost effective way to finance and maintain a vehicle. The finance company allows significant tax advantages to be enjoyed, and a change of a new, or nearly new vehicle every two or three years – in return for a fixed monthly charge that is easy to budget for. An all-inclusive maintenance and breakdown package is an optional feature.

Contract Hire

The most popular choice for companies who want minimum outlay and maximum control of costs. With this VAT-beneficial package, one regular rental payment covers all risks, including depreciation and disposal costs, for an agreed period of time and mileage. Road Fund License is included, and roadside rescue, maintenance and relief vehicle provision are options that can be added, and charged to the monthly rental.

Finance Lease

Ideal for VAT-registered companies who want to handle the administration of their vehicles, and have the asset shown on their balance sheet. The hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.

Contract Purchase

For companies with high-value cars who would like the option to purchase the vehicles but don’t want any depreciation risks. The customer acquires the vehicle by paying fixed monthly installments, with the asset being shown on the company balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back.

Hire Purchase

After paying the initial deposit the balance is paid by fixed, equal monthly payments, following which ownership is transferred to the client. No VAT is added to the payments, and interest is tax-deductible. Classified as a company asset, the vehicle can be written down against taxable profits.

Lease Purchase

For non VAT registered companies who want eventual ownership of the vehicle. The company acquires ownership when all payments have been made. Part of the capital cost of the vehicle payment may be deferred into a ‘balloon payment’ at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the leasing period.

Sales and Leaseback

For companies who own vehicles and would like to generate capital from their sale, yet retain use of them. This VAT beneficial scheme involves the finance company purchasing the vehicles for an agreed price, and then leasing them back, using either Contract Hire or Finance Lease, according to customer preference.