A fixed term agreement based upon a predetermined annual mileage, Contract Hire removes the risk of depreciation and regularizes cash flow with a fixed monthly payment including road fund licence. Additional services can be arranged to include vehicle servicing and maintenance, tyres and exhaust replacements, breakdown assistance, and relief vehicle facility. The ability of the Funder to reclaim all of the VAT on the purchase price in turn reduces the monthly payment in comparison with a purchase plan.

Benefits of Business contract hire:

• The rentals are tax deductible
• Initial payment requirements are generally low
• Pre-determined costs and fixed term smooth out cash flow
• Accurate budgeting with minimal administration
• Contract Hire can include maintenance and vehicle servicing
• No purchasing or disposal hassles
• No risk of depreciation
• The contract hire company is able to reclaim all the VAT of the purchase price of the vehicles, which is reflected in much lower overall costs

Balanced Payment Plan

This plan is another form of lease purchase that provides you with even more flexibility, because it incorporates a variable rate of interest. With a balanced payment plan you have the opportunity to link the interest you pay to the current interest rates, so you can take advantage if rates fall.

Benefits of Balanced Payments

• Suitable for early settlement
• No extortionate hidden charges
• Variable rates
• End contract anytime
• Ideal for short term purchases

This type of agreement is a pure funding method of spreading the vehicle purchase value over an extended term. Initial payment requirements are usually lower than hire purchase and a proportion of the depreciation can be deferred by including a final balloon payment.

Benefits of Lease Purchase:

• Fixed monthly payments for the duration of the contract help planning ahead
• Initial payment requirements are generally low
• You can purchase the vehicle at the end of the contract
• A residual value can be included in the lease thereby reducing the monthly payments

Designed for the consumer, PCP utilizes the future value of a vehicle to reduce monthly costs. This value is guaranteed based upon an agreed predetermined annual mileage and allows an option to either purchase the vehicle for this price or simply return it to the Funder with no extra cost (subject to mileage and/ or condition). Service and maintenance facilities can also be included where required.

Benefits of personal contract purchase schemes :

• Initial payment requirements are generally low
• Pre-determined costs and fixed terms smooth out  personal cash flow
• Rentals can include maintenance
• No purchasing or disposal hassles
• Option to purchase the vehicle at the end of the contract
• No risks of depreciation