Finance Options

There are a number of different ways that you can finance your car or light commercial vehicle. Whether you're a business or private user, we can help you to choose the option that's right for you and/or your business.

Contract Hire and Personal Contract Hire
This is a convenient and hassle-free hire agreement, whereby the user simply pays a fixed monthly rental for the use of the vehicle over a pre-determined term and mileage. There's no risk of unpredictable residual values as at the end of the agreement, the vehicle is returned to the funder for disposal. It's popular with business users as it's both VAT and tax efficient and with private individuals who want fixed cost motoring.
- Further details on Contract Hire and Personal Contract Hire.

Finance Lease
This is a VAT beneficial ire agreement for business users who want to handle the admin of their vehicles and have the asset shown on their balance sheet. The hirer can choose to pay the entire cost of the vehicle plus an interest cost over the lease period and receive a percentage of the proceeds following the sale of the vehicle or pay lower monthly rentals with a final balloon payment based on the anticipaed resale value of the vehicle.

Contract Purchase and Personal Contract Purchase
This is a purchase agreement with a difference in that it offers low fixed monthly payments with the bonus that the user has no risk of a potential fall in the residual value of the vehicle. This is due to a balloon placed at the end of the agreement, which is guaranteed by the finance house and is determined at the start of the contract based on the term and mileage that you choose. At the end of the agreement, you can either pay the final amount and keep the vehicle or sell it/trade it in and use the equity towards your next vehicle or simply hand it back to the finance company. It's popular with companies who aren't VAT registered and private indivicuals who want fixed cost motoring with flexibility.
- Further details on Personal Contract Purchase.

Hire Purchase/Lease Purchase
This is a purchase agreement for a business or an individual who wants eventual ownership of the vehicle which is aquired when all the payments, including the option to purchase, have been made. part of the capital cost of the vehicle payment may be deferred into a "balloon" payment at the end of the agreement, the anticipated value of the vehicle.