Business User Finance Options

Contract Purchase
For business users who change their vehicle between 24 to 48 months this is a popular choice for funding your vehicle as you have the security of a Guarenteed Minimum Future Value.

So how does it work?
- You choose your vehicle - new or used
- Choose a repayment period suitable for you
- Decide on your annual mileage
  This will then give you a Guaranteed Minimum Future Value, which becomes your optional final payment
- You choose a deposit and monthly payments suitable for you
- At the end of the agreement you have three options; (a) Part exchange your vehicle for another car (b) Keep the car and pay the final payment (c) Hand the vehicle back and have nothing further to pay.
What are the benefits to you?
- Fixed monthly payments, ideal for budgeting in your business
- Your Guaranteed Minimum Future Value ensures a lower initial outlay for your business
- The interest you pay is tax deductable
- Your vehicle is an asset to your business so you can write down a proportion of its value against your business profits
- You can decide what to do at the end of the agreement giving you more flexiility
Hire Purchase
A very simple method of purchase, ideal for the business user who wants to own the vehicle at the end of the agreement, typically after 48 months.

So how does it work?
- You choose the desired vehicle (new or used)
- You choose a repayment period suitable for you - typically between 12 to 60 months
- You choose a deposit and monthly payments suitable for you
- At the end of the agreement, when all the payments have been made, you own that vehicle
What are the benefits?
- Once you've reached the end of the agreement, your business owns the vehicle
- Fixed monthly payments helps your business with budgetng purposes
- The interest you pay is tax deductable
- The vehicle is an asset to the balance sheet so you can write down a proportion of it's value against the profits of your business
- With less to pay at the beginning of the agreement, you'll have more to invest elsewhere in your business
Contract Hire
This finance company will reclaim the VAT on the vehicle you drive and this saving is passed to you with reduced rentals. There are other tax efficiencies available.

So how does it work?
- You choose the new vehicle
- Choose the hire period which is best suited to you, typically between 24 to 48 months
- Choose an annual mileage
- Agree the rental period that works for you and your business
- At the end of your agreement, you give the car back
What are the benefits to you?
- A fixed monthly payment with the option to include your servicing and maintenance
- You won't have to worry about the future value of your vehicle
- Optional maintenance contract, so there will be no surprise bills
- There will be no requirement to sell your vehicle at the end of the agreement
- Contract Hire is 'off-balance sheet' so it improves the businesses gearing ratio
- Rentals are allowable against profits. Percentage may vary dependent on vehicle.
- If VAT registered your business can claim up to 50% of the VAT on monthly rentals for passenger cars and 100% on LCV. 100% VAT can be claimed on the maintenance rental

Business User Finance Options

Contract Purchase

Hire Purchase

Contract Hire

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