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Finance methods explained

Contract Hire

Contract hire is a vehicle-leasing contract for sole traders, partnerships, limited companies and PLC's. The Hirer benefits by paying a single fixed rental each month. This includes road fund licence and, if required, service and maintenance. Rental periods typically vary between 18 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 1 or 3 months rental. VAT is payable on rentals but is partially reclaimable by VAT registered companies. At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made. For details of Finance Lease & Contract Purchase, please contact this office.

Sale And Leaseback

If your company already has vehicles that have been purchased in the past, we can arrange to buy the vehicles off you to give a capital injection to the business. The vehicles would then be leased back to you at competitive rates.

Personal Contract Purchase

Purchase Personal contract purchase (PCP) is available to every one subject to status. PCP provides a new or used vehicle for a pre-determined period, normally 24 - 48 months. Like contract hire the contract has a low initial payment, usually 3 monthly payments, followed by fixed payments for an agreed period with an agreed mileage. At the end of the contract period there is a guaranteed future value that you have the option of paying to take ownership of the vehicle, or you can hand back the car without penalty.

Personal Contract Hire

Personal Contract Hire (PCH) has been specifically designed for people opting out of a company car scheme or joining a new company that provides a company car allowance, instead of a company car. A PCH contract includes road fund licence and, if required, service and maintenance. Rental periods typically vary between 24 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 1 or 3 months rental. At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made.

Non Status/Sub Prime Contracts

These are available for new start companies and businesses or individuals that have experienced credit problems in the past. Initial payments are typically 6 times the monthly rental.

Lease Purchase

Lease Purchase is essentially Hire Purchase with a balloon payment at the end of the contract. Lease Purchase offers lower monthly payments than normal hire purchase. Instead, at the end of the agreement, you can make a final lump sum payment (or 'balloon') to own your car.

It's fixed rate finance - but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement options include car purchase, refinance, part exchange or resale.

The deposit you pay is flexible - from as little as £99. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months) plus a final balloon payment.

Hire Purchase

Hire purchase is a simple, straightforward way to spread the cost of buying a new car. It is fixed rate finance - with a fixed monthly payment. The deposit you pay is flexible - from as little as £99. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months).

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