Finance Options at Eastern Western

Mercedes-Benz Hire Purchase

Western Commercial Mercedes-Benz have a wide variety of finance packages that can be tailored and suited to your businesses’ requirements. Our team are always on hand to help answer any questions, listen your needs and help devise a financial offer that works for your business.

Hire Purchase is one of the finance packages that we offer and allows businesses (small and large) to spread the payments for a vehicle over an agreed period of time e.g. 2 – 5 years. Once the last payment has been completed, the vehicle is then owned by you and your business.

Hire Purchase can be a lucrative and sensible option for both small and large companies looking to take advantage of a number of benefits including;

Repayments are not subject to VAT
The vehicle is shown as an asset on your balance sheet
Annual investment allowance
Writing down allowances are claimable
Interest is allowable against taxable profits

To find out more about our Hire Purchase finance offers please get in touch with our team online, via phone or at one of our dealerships in Edinburgh, Glasgow, Belshill or Dundee.

Mercedes-Benz Agility

Western Commercial provide a contract purchase finance package called Mercedes-Benz Agility. Agility allows you purchase a commercial vehicle are reduced monthly payments with a final and optional lump sum to pay at the end of the contract.

A member of our business team will take you through and explain every aspect of the purchase and will tailor make a plan for your monthly repayments and term to suit your business needs based on an expected annual mileage calculation. The Guaranteed Future Value is equal to the final Optional Purchase Payment. You don't have to decide whether to make this payment and keep the vehicle until the end of the agreement. You simply choose how long you want to keep the van, how much you would like to pay as an initial deposit and the monthly payments that suits your business best. When the agreement comes to an end you can either purchase the vehicle by paying the Guaranteed Future Value, return the vehicle or part-exchange the vehicle.

Businesses often benefit from contract purchase agreements like Mercedes-Benz Agility because they provide lower monthly payments and Mercedes will guarantee the future value of the vehicle. This allows many companies to have the freedom to either purchase the vehicle or not at the end of the agreement. Furthermore, the flexible nature of a contract purchase means that businesses can decide on the size of the deposit and monthly repayments. Purchase contracts help mitigate risk of depreciation and all repayments are not subject to VAT.
Find out more by getting in touch with our finance team today at your nearest Western Commercial dealership.

The Benefits of Agility

Lower monthly payments, as Mercedes-Benz guarantee the future value of your vehicle.
Defer your decision to own the vehicle outright until the end of the agreement.
Decide on the level of deposit and monthly repayment that suits your business best.
Enjoy a risk free finance experience as the future value is underwritten by Mercedes-Benz.
Avoid the risk of depreciation and benefit through more affordable payments.
Monthly payments are kept low by agreeing a lump sum at the end of the finance term called the 'Guaranteed Future Value'.
Repayments are not subject to VAT

Finance Lease

Western Commercial are able to provide our customers with a number of cost-effective finance offers to help businesses purchase new or used vehicles. Contract Hire is one such way in which a business customer can purchase a vehicle at a good rate and great terms for the business. Contract Hire purchases require no capital investment and the vehicle isn’t shown on your balance sheet. Unlike many other business finance schemes, repayments are subject to VAT.

However, as repayments are based on the price of the vehicle at the start of the contract through to the end, monthly repayments are often much lower than other finance schemes. Rentals are allowable against taxable profits and businesses can benefit from the knowledge that their costs are always fixed and covered by scheduled maintenance as part of the agreement.

To find out more about how your business could benefit from Mercedes-Benz Contract Hire, get in touch with the Western Commercial team. We’re always happy to answer any questions in a friendly, honest and easy-to-understand manner.

The Benefits of Contract Hire

With this option your vehicle is hired to you for an agreed time.
Your repayments are based on the difference between the price of the vehicle at the start of the period and its projected value at the end. You only repay a proportion of the vehicle's value, your payments are kept low.
Rentals allowable against taxable profits.
Totally fixed and predictable costs for running your vehicle.
Typically all scheduled maintenance is covered but you can also add options that include Road Fund License, tyre replacement, out of hours servicing and windscreen cover.

To find out more about how Contract Hire and Fleet Management can benefit you and your business, please call 0333 241 6243 or contact us today.

Operating Lease

An Operating Lease is perhaps the simplest way to obtain a vehicle, where the vehicle is hired to you for a fixed period.

Monthly rentals are based on the difference between the price of the vehicle at the start of the agreement and its projected residual value, plus finance charged. Therefore only a proportion of the vehicle's value is being repaid which avoids any large initial outlay and reduces the monthly rental.

At the end of the lease period the vehicle is simply returned, freeing you from any further obligations apart from any excess mileage or damage charges, if applicable. Repayments are subject to VAT

The Benefits of Operating Lease

Rentals are allowable against taxable profits.
Off balance sheet funding.

Finance Lease

With a Finance Lease agreement, a vehicle is hired to you for a fixed period without the option of ownership. At the end of the contract, the proceeds from the sale of the vehicle, less a small fee (5%), are returned to you.

Repayments are subject to VAT

The basic details are;

You pay monthly for the use of a Mercedes-Benz vehicle over an agreed period of time.
At the end of the agreement the vehicle must be sold on to an independent third party. We will invoice the third party on your instruction and then return 95% of the sale price to you.
Alternatively you may return the vehicle to Mercedes-Benz. Mercedes-Benz will then sell the vehicle on and return 95% of the net sale proceeds to you, after deductions and collection fees.
You can choose to pay a peppercorn rental (1 monthly payment plus vat) and have use of the vehicle for a further year.

The Benefits of Finance Lease

Fixed regular monthly payments.
Rentals are allowable against taxable profits.
Eliminates capital expense.
No mileage conditions.
At the end of the agreement you hand back the vehicle or sell it to an independent third party and receive 95% of the sale proceeds.

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