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 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 straightforward 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 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
The finance company reclaims the VAT on the car you drive and this saving is passed on to you with reduced rentals. There are other tax efficiencies available.
How does it work?
Choose the 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