Financing Your Van
Hire Purchase
If ownership is a priority then this is a cost effective route to purchasing your vehicle.
- Low Deposit - VAT Only
- Flexible repayment period - up to 60 months
- Fixed monthly repayment aid budgetary control and cash
flow
- 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
- Year 1 - 40%
- Year 2 - 25%
- Year 3 - 25%
- Ownership of vehicle
will pass when the agreement is completed
- Ideal for those who require ownership of the vehicle
Finance Lease
This facility provides
the customer with the benefits of ownership with the minimum
deposit and maximum flexibility- Deposits are usually the
equivalent of three rentals but can be any amount whatsoever
- Repayment period of up to 60 months
- VAT is paid monthly, then claimed back quarterly (if VAT
registered)
- Rentals are 100% allowable against tax profits
- Facility can have a balloon profile, which defers a
large payment to the end of contract - thus reducing monthly
rental and adding cash flow
- Vehicle sold or part exchanged at end of contract, the
hirer benefits from 95% of sale proceeds (excluding VAT)
- Ideal for non-VAT registered business users looking for
a low initial deposit and maximum flexibility
- No mileage clauses
Contract Hire
Comprehensive, fixed cost
solution where use of your commercial vehicle is important, but
without the responsibilities of ownership. Essentially an
operating lease with full maintenance package. Mileage sensitive
- be careful!- 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
- At the end of the contract, simply hand the vehicle back
- The vehicle is subject to an inspection, where any
reconditioning costs are charged to the customer - ideal for
VAT registered larger fleet operators.
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