Choosing the right finance package

If you have already found a car or just want to get a guideline quotation and an approval in principle, the first step is to tell us a bit more about yourself and what you are looking for. You can start this process by using the simple to use Ready Reckoner below. And don’t worry if you get stuck as our friendly advisors are on hand to help.

Just give us a call on 0844 335 1763 and we can answer any questions you may have.

Contract Hire:

Contract Hire is one of the most popular and tax efficient finance methods available today. In essence, vehicles funded in this way are hired rather than purchased, with a fixed monthly charge payable to a leasing company who maintain official ownership of the vehicle.

The agreements typically cover a 2 to 5 year period and you can even choose to include optional elements such as maintenance or breakdown and recovery and thus gain greater control over the true cost of running your vehicle.

Personal Leasing:

This method of finance is specifically designed to help you budget more easily and is very similar to the Contract Hire option described above.

This means that you lease a vehicle for a set period of time and agree to pay a fixed monthly amount. You can even choose to include a great value maintenance package or breakdown and recovery service within your monthly payments. All of this means you get the car your want at a price you can afford without worrying about receiving any unexpected bills further down the line.

Hire Purchase:

Hire Purchase is one of the oldest forms of credit and is used heavily within the retail sector for goods such as televisions and washing machines. When you opt for a Hire Purchase (HP) agreement, you are in effect taking out a loan for the entire value of the vehicle you wish to buy.

You then pay back this loan over a set period of time, together with interest at an agreed level. This product is useful for people who wish to own the vehicle outright, however paying for the vehicle in full will mean higher monthly payments.

Contract Purchase:

This method of finance helps you to purchase a vehicle over a set period of time and at fixed monthly costs, without taking the depreciation risks normally associated with ownership.

That’s because during the contract term the financial structure is much the same as leasing (i.e. you are financing the depreciation rather than the entire cost of the vehicle), however at the end of the contract you have the option to purchase the vehicle by paying a final amount, typically known as a balloon payment.

Whether you choose to pay the balloon or simply hand the vehicle back is entirely down to you and can be decided upon at the end of the contract term.

Finance Lease:

This is a tax efficient option where you can choose to fund the entire cost of the vehicle, plus interest, over a set period or pay lower monthly rentals and then a final payment based on the anticipated resale value of the vehicle.

Technically speaking, the vehicle is actually rented from a leasing company throughout the contract term, although you can use it as if it were your own. In addition, the payments are effectively VAT free which makes it an ideal choice for VAT registered businesses.