Funding Explained

Contract Hire

Contract Hire is a very popular choice for V.A.T Registered companies with more than 40% choosing this Funding method (Fleet Week). Having minimum outlay and maximum control of costs coupled to the Tax advantages and reduced administration assists business to budget more accurately for their vehicle requirements. Contract Hire is available to Sole Traders, Partnerships and Ltd Companies.

Finance /Taxation Benefits
• Accurate Monthly Budgeting
• Off Balance Sheet
• Improved Cash Flow
• Minimum Capital Expenditure
• Fixed Interest Rates
• Rentals Allowable against Taxable Income
• V.A.T Recoverable on Monthly Rentals*
• No Depreciation Risks
* Only 50% of the V.A.T relating to the Finance element is recoverable if car has private usage. 100% if Business only. On Contracts with Maintenance the Service element V.A.T is Recoverable.

Vehicle Running Benefits
• No Vehicle Disposal Problems
• Reduced Administration
• On-going Advice and Support
• Road Fund Licence Provided for Duration of Contract
• Optional Maintenance Package
• Optional Breakdown Rescue Cover
• Optional Replacement Vehicle Cover in Event of Breakdown
• Optional GAP Insurance*
*GAP Insurance provides cover for the Short-fall between the outstanding Finance and the Insurance Value if vehicle is declared a Write-off by your Insurance Company.

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Contract Purchase

Ideal for Companies who operate high-value cars, and who would like the option to purchase but wish to avoid any depreciation risks. A Funding Agreement where you acquire the vehicle by paying fixed monthly instalments with the asset being shown on the Balance Sheet, with option to retain ownership at the end of the agreement or return the vehicle.

Finance /Taxation Benefits
• Fixed Cost Motoring
• Low Initial Payments
• Fixed Interest Rates
• Road Fund Licence for duration of Contract
• Capital Allowances available
• Optional Maintenance Package
• Option to Purchase or Return Vehicles at end of Contract

Personal Contract Hire

Personal Contract Hire (PCH) is a relatively new Product that has been especially designed for people who are opting out of their Company Car Scheme and wishing to utilise a Company Car Allowance to Finance a New or Used Vehicle or a Parallel Import. You benefit from the purchasing power of Premier Contract Hire and the National Leasing Companies, which allows us to offer extremely competitive rates and ensures your money will further than you expected.

Finance /Taxation Benefits
• Most Rates are the same as our Contract Hire Rates but are plus V.A.T
• Low Initial Payments
• Fixed Cost Motoring
• Optional Maintenance Package
• New or Used Vehicles and Parallel Imports available
• A letter confirming your Monthly Allowance is normally required
• Vehicle is returned to the Finance Company at the end of Contract

Personal Contract Purchase

Personal Contract Purchase (PCP) is another popular method for private individuals who want a hassle-free and cost-effective way to Finance and maintain a vehicle. This product offers the flexibility of choosing your end of Contract Options and is available on New or Used Vehicle and Parallel Imports.

Finance /Taxation Benefits
• Two, Three and Four Year Contracts available.
• Low Initial Payments (Normally 3 Months)
• Fixed Cost Motoring
• Optional Maintenance Package
• New or Used Vehicles and Parallel Imports available
• Option to Purchase, Part Exchange or Return Vehicle at end of Contract

Lease Purchase

A Finance Product for Non V.A.T Registered Companies that prefer eventual ownership of their vehicles. These agreements allow for the company to acquire ownership when all payments including the optional "Balloon" payments have been made. The disposal and residual value risks remain with you.

Finance /Taxation Benefits
• Low Initial Payments
• Improved Cash Flow
• Capital Allowances available
• Ownership of Vehicle

Finance Lease

Suitable for V.A.T Registered Companies who want to handle the administration of their Vehicles, and have the Asset shown on their Balance Sheet. This V.A.T beneficial option allows the hire to choose to pay the entire cost over the hire period including interest charges or pay a lower Rentals during the Contract and pay a Final Rental based on the anticipated resale value of the vehicle.

Finance /Taxation Benefits
• Low Initial Payments
• Fixed Cost Motoring
• Fixed Interest Rates
• V.A.T Recoverable on Rentals*
* Only 50% of the V.A.T relating to the Finance element is recoverable if car has private usage. 100% if Business use only