Below is a brief explanation on payment types available, if you need more information, please get in touch and one of our specialists will be happy to help.
Contract Hire is a comprehensive motoring package, enabling you to drive a new vehicle of your choice at reduced, fixed amounts. As you simply rent the vehicle, your finances are free from investing large amounts of money in purchasing a brand new vehicle, and there is no risk of depreciation. If you choose to take out a maintenance contract (which is incorporated into your monthly rentals), you will be covered for servicing, repairs, breakdowns and tyre costs, simply leaving insurance and fuel to pay for.
Contract Hire offers great flexibility with contracts lasting from one to four years, to additional options including maintenance cover and also a relief vehicle available. If you are VAT registered, you can recover up to 100% VAT for commercial vehicles (50% for cars including private use). Full tax relief is also available if you are non-VAT registered, depending on your chosen vehicles emissions and the use of the vehicle.
At the end of the agreement, simply return your vehicle and pay no further charge (provided mileage is within agreed limit and the vehicle has only sustained normal wear and tear).
Business Lease offers low, fixed monthly rentals, and if you do not want to keep the vehicle at the end of the contract, this option is perfect for you. If you would like to further reduce your monthly rentals, a balloon rental can be incorporated to your contract; this is the future anticipated value of the vehicle, and is payable at the end of the contract.
Business Lease has a wide variety of options from paying monthly to annually, to contracts lasting from one to four years. Additionally, maintenance cover can be included to more closely control your motoring costs. If you are VAT registered, you can recover up to 100% VAT for commercial vehicles (50% for cars including private use). For both options, 100% of the VAT on any service element is fully reclaimable.
At the end of the agreement, if you sell your vehicle, 100% of the proceeds of the sale will be returned to you as rental rebates. If you wish to continue to use your vehicle, you simply pay a peppercorn rental (which is equivalent to one month's rental) per annum.
With Lease Purchase, you chose your deposit and the period over which your monthly payments will be made, offering great flexibility. These monthly payments can then be reduced by agreeing on a future anticipated value (or balloon rental). When the contract ends, simply pay the balloon payment and you have ownership of the vehicle.
Hire Purchase is the simplest form of finance, as you simply pay fixed monthly payments; when you have paid your last payment, you will own the vehicle without paying a large final amount.
Advantages of Hire Purchase include VAT-free payments, and you can choose your deposit and the term of the agreement, offering great flexibility.
ELECT 3 PRO
If you would like a new van but would like only to pay low monthly payments with a low deposit, then Elect 3 Pro is the right finance option for your business. Your monthly payments are kept low by including the minimum amount your vehicle will be worth at the end of the agreement, or GFV (guaranteed future value).
At the end of the agreement you then have three options: simply return the van and pay no further charges (subject to mileage and vehicle condition); part-exchange and take out a contract on a new vehicle; pay the GFV and take ownership of your van (subject to paying a purchase option fee).