FLEXIBLE VEHICLE LEASING FOR VAN LEASING AND CAR LEASING
A flexible alternative to a contract hire agreement is finance lease.
- NO FORMAL MILEAGE RESTRICTIONS
- NO EXCESS MILEAGE CHARGES
- AT THE END YOU CAN KEEP, PART EXCHANGE OR SELL YOUR VEHICLE
- RECOVER AT LEAST 50% OF THE VAT
- LOW DEPOSITS
- NO SETTLEMENT PENALTIES
- NO DAMAGE CHARGES
- FIXED PAYMENTS FOR THE PERIOD
- AVAILABLE FOR NEW AND USED VEHICLES
A finance lease agreement works in the same way as a hire purchase agreement, with many additional benefits.
First of all, there are no fixed mileage limits or damage charges at the end of the agreement and at least 50 percent of the vat can be recovered on a car and 100 percent on a van. Conversely, on a hire purchase agreement no vat can be recovered on a car, unless it is being used as a taxi or something similar, so this represents a significant saving to any vat registered business. Again, 100 percent can be recovered on a commercial vehicle.
So, if you add up all the payments including the deposit, and subtract the vat that you will recover, this will give you a true cost price. Now comparing the total amount payable to the cash price, you will notice that at worst it is a very cheap method of finance or at best it can be cheaper than the cash price.
The rentals are fixed for the duration, protecting you against inflation rises. If you wish to settle the agreement early there is no penalty, in fact the finance company discounts the amount owing, at such time, as they are getting their money sooner.
There is also more flexibility to change or dispose of the vehicle during the period of the agreement. If you wish to settle the finance during this time you can use the value of the vehicle to pay-off the outstanding finance and retain any equity, or pay any shortfall if there is any. You can of course sell the vehicle yourself, although our customers prefer us to do it on their behalf as this saves you the inconvenience.
Should you want to acquire the vehicle at the end, you can. This can provide a cost saving if there's an additional use for the vehicle rather than buying a newer, more expensive model.
Hopefully this is clear, however please feel free to call the team directly on 08458 336633 if you require any additional information or if there are any details that require further clarification. |
