Business User Finance Options



Contract Purchase

This option is ideal for the business user who wishes to change their car between 24 and 48 months and wants the security of a Guaranteed Minimum Future Value.


How does it work?

  • Choose the car (new or used) you like
  • Choose the most suitable repayment period
  • Agree on your annual mileage
  • You are given a Guaranteed Minimum Future Value which becomes your optional final payment
  • You decide on the deposit and payments suitable for your budget
  • At the end there are three choices for you; part exchange your vehicle for another car, keep the car and pay the final payment or hand it back and have nothing further to pay

What are the benefits?

  • Having a final payment reduces initial outlay and keeps the monthly payments lower, helping the cash flow of your business
  • Fixed monthly payments make budgeting easier
  • The interest you pay is tax deductible
  • Because the car is an asset on your balance sheet, you can write down a proportion of its value against your business profits
  • Flexibility at the end of the agreement to have an option that suits you


Hire Purchase

The most straight forward method of purchase. Ideal for a customer who desires outright ownership of their car and probably changes their car at intervals of greater than 48 months.

How does it work?

  • Choose the car (new or used) you like
  • Choose the most suitable repayment period between 12 months and 60 months
  • You agree on a deposit and monthly repayment budget
  • At the end of the agreement, as long as all the payments have been made, the car is yours to keep

    What are the benefits?

    • At the end of the agreement your business owns the car
    • By spending less cash up front this helps the business cash flow, or enables you to use the money to invest elsewhere
    • Fixed monthly payments make budgeting easier
    • The interest you pay is tax deductible
    • Because the car is an asset on your balance sheet, you can write down a proportion of it's value against your business profits


    Contract Hire

    This option allows you to run a car without the worry of ownership or depreciation and giving you the option of having a maintenance package, so you have no unexpected bills.

    How does it work?

    • Choose the new car you like
    • Choose the most suitable hire period, usually between 24 and 48 months
    • Agree on your annual mileage
    • Agree the rentals most suitable for your budget
    • At the end of the agreement simply hand the car back

    What are the benefits?

    • If VAT registered, your business could claim up to 50% of the VAT on monthly rentals and 100% VAT on the maintenance rental
    • Optional maintenance contract, so no surprise bills
    • A proportion of your rental payments allowable against tax
    • Reduced initial outlay improves the cash flow of your business
    • No hassle in selling the vehicle at the end of the contract