CONTRACT HIRE

 

Contract Hire provides the use of a vehicle together with various services for the hire period at an agreed

rental. Under a contract Hire agreement the depreciation risk is borne by the Leasing/Contract Hire Company

(the Lessor).

 

The Lessor forecasts what the resale value of the vehicle will be at the end of the Lease Term and excludes this

amount from the total capital cost, The balance plus finance charges and operating costs are then spread over the

Lease Term.

At the end of the Lease the vehicle is returned to the Lessor who retains the sales proceeds on disposal.  

 

Contract Hire is available with or without Maintenance.

 

 

CONTRACT PURCHASE

 

Contract Purchase has been developed to address the disadvantages of leasing high priced cars by

mirroring many of the operational and administrative benefits of Contract Hire, but at the same time

mitigating taxation in two specific areas, VAT and Corporation Tax.

 

The contract is written as a Conditional Sale agreement. Essentially this means that the Fleet

Management Company sells the vehicle to the client company.

 

After a payment to finalise the agreement, the client may exercise an option for the Fleet Management

Company to dispose of the vehicle on his behalf or the user can retain the vehicle or dispose of it himself.

 

One regular payment covers funding, road fund licence, maintenance and depreciation up to an agreed age

and mileage for excess mileage if the customer opts to return the vehicle rather than purchase it for the

pre-determined residual value.

 

 

 

FINANCE LEASE

 

Finance Lease provides an additional line of credit enabling you to acquire your new vehicle without tying

up working capital, Rentals are spread evenly over a contract period so that costs incurred are in line with

vehicle usage.

 

Choose any make and model of new car or commercial vehicle and we will purchase it on your behalf, Once

you have decided on your preferred Lease Term and the Residual Value (i.e., value at the end of that term) is

agreed upon, the rental is then paid at a frequency which suits you, On expiry of the contract, the vehicle is

If the vehicle is sold, all sale proceeds pass directly to us and are set off against the residual value, If the sale

proceeds exceed 98% of the forecast residual value then you will be charged with the balance outstanding.

To extend the Lease a new term and residual value will be agreed and a new, usually lower, rental would be

payable.

 

 

 

PERSONAL CONTRACT HIRE

 

Personal Contract Hire gives the user a fixed equal monthly rental for a fixed contract term. At the end of the

contract term the car is handed back. The minimum term is 24 months, however the Car leasing centre can

offer 60 months contracts.

It is Popular with Company car drivers who are given a "Car Allowance" instead of a company car thus

allowing the individual to make his/her own choice and arrangements. This in turn will benefit the company.

This will also avoid "Benefit in Kind" taxation.

 

Advantages:

· Low initial outlay.

· More tax-effective than Personal Contract Purchase if the vehicle is used partly for work.

The contract is not subject to a final balloon payment.

 

 

 

PERSONAL CONTRACT PURCHASE

 

Personal Contract Purchase is really a lease purchase agreement where the customer has the option at the

end of the agreement to either return the vehicle or pay the agreed balloon payment and keep or sell the vehicle.
The balloon payment relates to the anticipated future value of the vehicle, the future value is based on the

mileage set for the contract at the start.

Advantages:

• Low initial outlay.
• Customer has the option to either purchase or return the vehicle at the end of the contract.

Disadvantages:

• Personal Contract Purchase is not as tax effective compared with Personal Contract Hire and is
• usually more expensive.

 

Personal Contract Purchase is becoming more and more popular with employees, constantly looking at their

Tax liabilities in relation to company motor cars.

 

 

 

SALE & LEASEBACK

 

In its simplest form Sale & Leaseback is when a Client will sell their vehicles to a leasing company and then

leases them back under a finance agreement, normally contract hire.

 

 

 

OUTRIGHT PURCHASE

 

Outright Purchase as it says, and it gives you total control, also there is no hassle of termination costs

when you want to get rid of a vehicle, however you will have to sell the vehicle yourself.

 

 

 

HIRE PURCHASE

 

The simplest and most flexible form of asset finance is Hire Purchase. For many businesses, ownership

of assets is important and Hire Purchase allows ownership to be acquired over an agreed period of time

in a way which can be self-financing.

You enter into an agreement over a fixed period at a fixed instalment. Upon payment of the final instalment

the vehicle becomes yours and a balloon payment can be incorporated

We will consider financing the following options on HP::

 

· NEW VEHICLES

· USED VEHICLES

· IMPORTS

· MOTORBIKES

· CARAVANS

    · CLASSIC CARS

 

 

 

MOTOR LOAN

 

Why not ask the Car Leasing Centre about our No Deposit Motor Loans, on any make or model of

New and Used Vehicle,

Used vehicles can be financed up to a Maximum of 6 years old.

 

Loan Periods from 12 to 60 Months or 12 months to 48 months

plus a Balloon payment.

 

 

 

ASSET FINANCE

 

Assets such as cars, computers, production plant, specialist equipment and commercial vehicles

are essential to the running of your business.

Asset Finance is considered to be the most cash-flow friendly and tailored way of acquiring business assets and

can help you reduce costs and improve profits.