Funding Methods

Finance methods explained

Contract Hire

Is a funding method for companies who want to limit the financial risk and administrative task of owning their own fleet of vehicles.

Key benefits and features include:

• Fixed monthly rentals for the whole package, making budget planning easier to manage.
• Flexible terms to meet your requirements with variable duration from 12-48 months to suit your budget needs.
• Maintenance of vehicles can be included in monthly rentals, and so spread the cost helping with your cashflow.
• Contract hire removes depreciating assets from the balance sheet and the associated risks of owning vehicles

Find out more about Contract hire by calling our team on 0844 357 2495

Personal Contract Hire

This is the solution for private individuals who want to set the monthly costs of running a car and is becoming more popular amongst car users.Key features and benefits include:

• Fixed rentals for the whole package, making budget planning easier
• Flexible terms and mileage to suit your needs
• Maintenance of vehicles can be included in monthly rentals, and so spread the cost giving you trouble free driving for the duration of the contract

Find out more about Personal Contract Hire by calling our team on 0844 357 2495

Contract Purchase

Is for Businesses who want to own their vehicles at the end of the contract, but want to avoid the risk of depreciating assets.

Key benefits:

• Similar benefits to contract hire regarding fixed payments and flexible terms from 24 -48 months
• Maintenance can be included in the monthly payments to give you trouble free usage for the duration of the agreement
• The finance company guarantees the resale value of the vehicle at the end of the contract purchase agreement for a known, fixed amount
• Ownership passes to the customer at the end of the agreement when all payments have been made

Find out more about Contract Purchase by calling our team on 0844 357 2495

Personal Contract Purchase

This is a conditional sale agreement which allows you the customer to purchase the vehicle at the end of the agreement, or to simply hand it back if you want to

You can elect to include the maintenance and repair options to those that are available to all contract giving you the peace of mind that you will limit your expense over a fixed period.

Again flexible options with term and mileage are available and the package can be tailor made to suit your budget.

Find out more about Personal Contract Purchase by calling our team on 0844 357 2495

Lease Purchase

Lease Purchase is essentially Hire Purchase with a balloon payment at the end of the contract.

Lease Purchase offers lower monthly payments than normal hire purchase. Instead, at the end of the agreement, you can make a final lump sum payment (or ‘balloon’) to own your car.

It’s fixed rate finance – but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement options include car purchase, refinance, part exchange or resale.

The deposit you pay is flexible – from as little as £99. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months) plus a final balloon payment.

Find out more about Lease Purchase by calling our team on 0844 357 2495

Hire Purchase

Hire purchase is a straightforward way to spread the cost of buying a new car over a fixed period.

It is fixed rate finance – with a fixed monthly payment. The deposit you pay is flexible – from as little as £99.

The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months) until the balance is paid off.

Then ownership of the vehicle is transferred to you.

Find out more about Hire Purchase by calling our team on 0844 357 2495

Finance Lease

Finance Lease is a tax efficient option where you choose to pay either the entire cost of the vehicle, including interest charges, over an agreed lease period or opt to for a lower monthly payment with a final payment based on the anticipated value of the vehicle when it is sold at the end of the agreement.

At the commencement of the contract, your requirements for usage are agreed, and assuming this does not vary, monthly payments and interest rates are fixed for the duration of the contract.

At the conclusion of the contract you can continue to operate the vehicle under a “peppercorn agreement” although you will at no time take ownership of the asset.

For any other details about any of the funding methods available give us a call on 0844 357 2495