Finance Options

Toyota Yaris 4Finance Options For Businesses 

Hire Purchase

A conventional method of funding a car over a period of months, which would be a benefit to customers who want to totally pay for the goods in a cost effective manner and enjoy the flexibility of being able to settle early.

Lease Purchase

A more sophisticated method of funding which works on a similar principle to Hire Purchase. A funding agreement where the company acquires ownership when all the payments including the option to purchase have been made, part of the capital cost of the vehicle may be deferred into a “balloon” payment at the end of the agreement, which equates to the anticipated market value of the vehicle. Lease Purchase agreements can also be settled early.Contract PurchaseA payment structure similar to Lease Purchase but with an agreed annual mileage with the added benefit of having an ‘Optional Final Payment’ at the end of the agreement, often referred to as a ‘Minimum Guaranteed Future Value’ which protects the hirer from negative equity at contract end.

Contract Purchase

enables regular payment to cover funding, road fund licence and depreciation to an agreed age and mileage, optional maintenance package can be included.

Finance Lease

Typically structured in the same way as Lease Purchase with or without a balloon payment at the end. Fixed monthly rentals, initial rental can be small improving cash flow. The customer is responsible for any maintenance costs along with the risk of resale value and disposal. The vehicle is hired and not purchased. VAT is payable on all rentals and partially recoverable (50% on Passenger Cars and 100% on Commercial Vehicles- VAT registered businesses only.

Contract Hire

Also known as an Operating Lease, Contract Hire allows a company to pay for the usage of a car rather than pay for the ownership. At the end of the contract you will simply hand the car back. Contract Hire allows the use of Company vehicles from a fixed monthly rental over a set period giving inflation proof and fixed costs. Optional maintenance package can be included so that the monthly payment covers everything except fuel and insurance with no unexpected repair bills. The vehicle is hired and not purchased. VAT is payable on all rentals and partially recoverable (50% on Passenger Cars and 100% on Commercial Vehicles- VAT registered businesses only.

Finance Options – Personal

Hire Purchase

A conventional method of funding a car over a period of months, which would be a benefit to customers who want to totally pay for the goods in a cost effective manner and enjoy the flexibility of being able to settle early.

Lease Purchase

A more sophisticated method of funding which works on a similar principle to Hire Purchase. A funding agreement where the company acquires ownership when all the payments including the option to purchase have been made, part of the capital cost of the vehicle may be deferred into a “balloon” payment at the end of the agreement, which equates to the anticipated market value of the vehicle. Lease Purchase agreements can also be settled early.

Personal Contract Purchase - PCP

A payment structure similar to Lease Purchase but with an agreed annual mileage with the added benefit of having an ‘Optional Final Payment’ at the end of the agreement, often referred to as a ‘Minimum Guaranteed Future Value’ which protects the hirer from negative equity at contract end. Contract Purchase enables regular payment to cover funding, road fund licence and depreciation to an agreed age and mileage, optional maintenance package can be included.

Personal Contract Hire – PCH

Also known as an Operating Lease, Personal Contract Hire allows an individual to pay for the usage of a car rather than pay for the ownership. At the end of the contract you will simply hand the car back. All rentals include VAT. Optional maintenance package can be included so that the monthly payment covers everything except fuel and insurance with no unexpected repair bills. The vehicle is hired and not purchased.

FacebookTwitterShare