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Finance / Leasing
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Hire Purchase
Hire Purchase is a tax efficient way of purchasing a vehicle outright within a company. Having placed an initial deposit together with all the VAT, all repayments are followed on a agreed monthly figure. It allows your company to budget their monthly expenditure whilst still owning the vehicle at the end of the agreed term.
Further advantages are available through the current TAX system, in that all the interest on repayments are fully tax deductible, and at least 25%* of the value of the vehicle can be offset against the companies tax return.
At the end of the period of payments, you have full title to the vehicle. This allows companies who wish to have outright ownership a financially efficient and cost effective way to manage the purchase.
* Subject to the Government's legislation (currently 40% for 1st year allowances).
Lease Purchase
With Lease Purchase, a company is able to own a vehicle in a similar manner to a Hire Purchase, except that the final payment can be structured to include a 'balloon' payment, thereby reducing the monthly re-payments during the course of the period. This effectively allows the company greater cash flow during the period of the term.
The current TAX rules allow the same advantages as for Hire Purchase. The vehicle remains in the ownership of the company at the end of the term, once all payments and any 'balloon' is paid. Payments can be structured to suit the companies needs.
Finance Lease
Finance Lease is very simular in its structure to Contract Hire. Offering the same 'Off Balance Sheet' and Tax benefits. An initial deposit is followed by monthly payments made with VAT. A 'balloon' payment can be included at the end of the agreement, to help reduce monthly payments.
Currently all of the payments can be offset against Tax, and upon completion of the agreement, the vehicle is disposed of to a third party and any proceeds are refunded to the operator minus a nominal fee and all VAT. Thisa is generally one of the most cost effective methods of funding.
GAP Insurance
Should you be in the unfortunate position of having to make a claim on your insurance, there could be a period when the amount outstanding on the loan will be greater than the insurance value of your vehicle. GAP insurance can cover this shortfall, depending upon which policy is purchased, enabling a replacement vehicle to be purchased without any major financial impact on business.
Personal Contract Purchase
A Personal Contract Purchase is the best way to acquire and eventually own the vehicle for individuals who have opted out of the company car schemes operated by their employers.
P.C.P. is a version of a Lease offering a low deposit, fixed monthly payments with an eventual option to own the vehicle via a 'balloon' payment at the end of the plan. Alternatively the vehicle can be returned at the end with no disposal or balloon payment risks. Another option at the end is to re-finance the 'balloon' amount, on a new agreement.
This method of purchase offers some VAT recovery if the company is VAT registered. The writing down of the tax allowance is applicable, the interest can be claimed as a business expense, and it all contrives to offer accurate budgeting.
Payment Protection
Payment Protection is an insurance covering your obligations under the finance agreement should you become sick, disabled or redundant in the event of an unforeseen circumstance. The policy will continue to make the payments (subject to terms and conditions) until you are well enough to resume work.
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2008
'8' Reg
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10
Miles
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£14695
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2008
'8' Reg
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10
Miles
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£14995
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2008
'58' Reg
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1
Miles
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£11295
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2008
'8' Reg
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10
Miles
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£11495
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2006
'56' Reg
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10000
Miles
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£10695
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2008
'NEW 58' Reg
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1
Miles
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£5995
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