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Please click on the links below for some key information and helpful facts or why not give us a call to discuss your requirements further on 01506 600000

• Hire Purchase
  
Hire Purchase

A simple hiring agreement with the option of purchase at the end of the contract. The simplest form of finance.

Key Features
* Payment of Deposit which is negotiable (normally 10% of invoice price)
* The finance balance plus interest is repaid monthly

Key Personal Benefits
* Vehicle ownership
* Repayments over fixed period
* Fixed interest rates for duration of contract
* Flexible deposit (normally 10% of invoice price)

Key Business Benefits
* Payments not subject to VAT
* Interest may be offset against taxable profits
* Writing down allowances are claimable
* Vehicle appears as an asset on the Balance Sheet
* Additional line of credit

For more info Call ON T.01506 6000000
• Personal Contract Purchase
  
Personal Contract Purchase

Again this is another Hire Purchase agreement. Personal Contract Purchase (PCP) is very similar to Lease Purchase because it has a final payment built in. The main difference between the two products is that Personal Contract Purchase (PCP) offers three choices at the end of the contract:

* Make the final payment and keep the vehicle.
* Trade the vehicle back into the supplying dealer and use any
excess value as deposit on new contract.
* Simply hand vehicle back to supplying dealer without further
obligation (subject to excess mileage or damage charges).

For more info Call ON T.01506 6000000
• Lease Purchase
  
Lease Purchase

A final payment or balloon rental can be built into the agreement making it an attractive alternative to simple Hire Purchase. Building in final payment means that monthly installments are reduced. The final payment is the responsibility of the customer.

For more info Call ON T.01506 6000000
• Finance Lease
  
Finance Lease

Customer hires a vehicle for a fixed period based on annual mileage and replacemnet policy.

Key Features
* The vehicles projected residual value at the end of the lease period is determined.
* Monthly payments are based on the difference between this and the vehicles price at the start of the agreement, plus finance charges.
* There is no large outlay and customer benefits from reduced monthly payments.
* At the end of the lease period, the vehicle is returned to the supplying dealer with no disposal worries (subject to excess mileage or damage charges).

Key Personal Benefits
* Vehicle use without ownership
* Eliminates capital expense
* Improved cash flow with fixed monthly rentals paid from revenue income
* No vehicle disposal risk
* Reduced monthly rentals
* Optional maintenance package

Key Business Benefits
* VAT reclaimable (50% of lease element and 100% of maintenance element)
* Off balance sheet finance
* Rentals allowable against taxable profits (proportionately)
* Fixed monthly rentals
* Fixed monthly maintenance

Finance Lease (Final Payment or Balloon Rental)
Same as for Finance lease above with two exceptions
* Secondary period does not apply in Balloon Rental lease
* On disposal customer receives 100% of the net sales proceeds

Further Personal/Business Benefit
* Reduced monthly rentals due to the Final Rental

For more info Call ON T.01506 6000000
• Contract Hire
  
Contract Hire

Customer hires a vehicle for a fixed period based on annual mileage and replacemnet policy.

Key Features
* The vehicles projected residual value at the end of the lease period is determined.
* Monthly payments are based on the difference between this and the vehicles price at the start of the agreement, plus finance charges.
* There is no large outlay and customer benefits from reduced monthly payments.
* At the end of the lease period, the vehicle is returned to the supplying dealer with no disposal worries (subject to excess mileage or damage charges).

Key Personal Benefits
* Vehicle use without ownership
* Eliminates capital expense
* Improved cash flow with fixed monthly rentals paid from revenue income
* No vehicle disposal risk
* Reduced monthly rentals
* Optional maintenance package

Key Business Benefits
* VAT reclaimable (50% of lease element and 100% of maintenance element)
* Off balance sheet finance
* Rentals allowable against taxable profits (proportionately)
* Fixed monthly rentals
* Fixed monthly maintenance

For more info Call ON T.01506 6000000

• Tax Benefits
  
Tax Benefits

Ownership Products (Hire Purchase) ‘Attention all Business Users’
25% FYA up to a maximum of £3000 per anum. Interest charges can also be offset against tax. Finally a balancing charge/debit will occur at vehicle disposal depending on vehicle depreciation levels.

Non-Ownership Products (Leasing and Contract Hire)
All rentals are treated as business expense. 100% of rentals can be offset against tax on Invoice Price up to £12,000.
For vehicles costing more than £12,000, a proportion of the monthly rental can be offset using ‘Half the Excess’ rule.

Half the Excess Rule
The rule is designed to align tax allowances for rental products with the £12,000 capital allowances applicable to a purchase agreement. There is a simple formula, which can be used to calculate the allowable rental.

The calculation is as follows:


Invoice Price (inc.VAT) + 12,000	x 100 = % Rental Allowance
2 x Invoice Price


Using a new car costing £30,000 the figures would work as follows:


30,000 + 12,000	=	42,000	x 100 = 70% Rental (Ex VAT) Allowance
2 x 30,000		60,000

• VAT Implications
  
VAT Implications

There are NO VAT Implications on Ownership Products (Hire Purchase)

Hire PurchaseInstallments Do Not Attract VAT

Non-Ownership Products (Leasing and Contract Hire)
* 50% of the VAT on monthly rental can be reclaimed.
* 100% of the VAT on maintenance element can be reclaimed.
* Finally the 50% BLOCKED VAT element of the Leasing rental can be offset against tax as a business expense.

Are there any disposal problems on Contract Hire?
No problems whatsoever. Simply return vehicle to supplying dealer and hopefully collect your new car. All our sales consultants are fully trained on all business user products including VAT and taxation. But once again, they are not fully trained accountants and we would always refer customers to take professional advise before making their final business purchase decision.

Whether you're a company, partnership, sole trader or an employee looking to opt out of a company car scheme and take a cash alternative, the decision on how best to finance your new vehicle is always a difficult one, and the key to making the right decision is professional, impartial advice.

As market leaders in the sourcing and funding of both commercial and personal vehicles, we provide a personal service without equal in the industry, supplying all makes and models of cars to customers throughout Scotland.

We provide the most up-to-date, expert advice on taxation, legislative matters and all aspects of commercial and personal vehicle financing, clearly outlining for you the benefits of the various financial options available. With the emphasis always on first class customer service, we provide the following vehicle funding options:

To find out about a vehicle finance call our team on 01506 600000
or click here and complete the on-line form.