Key Benefits of Contract Hire
Contract Hire offers the company accurate monthly budgeting and cash flow, minimum capital expenditure and a fixed interest rate.
Frequently Asked Questions	Answers
Who owns the Vehicle?	The Finance Company
Who carries the residual value risk?	The Finance Company
Who carries the ongoing maintenance risk?	The Finance Company, assuming a maintenance contract is taken out, without maintenance it is the customer's responsibility
Is the vehicle on or off the balance sheet?	Contract Hire is off balance sheet, however it is recorded on the notes to audited accounts
Typically, how much cash is required up front as a deposit?	Typically 6-7% of the purchase price (ie 3 months advance rental) (However some special offers may require more or less than the typical advance rental)
Who arranges delivery and collection of the vehicle?	We can or the Finance Company
Does the customer own the vehicle at the end of the contract?	No
Can the monthly payments be offset in full against corporation tax?	Yes - 100% of the monthly rentals can be offset against corporation tax. With the exception of vehicles costing over £12000.00. (a proportion is disallowed. In addition, 100% of maintenance payments may be fully offset
Assuming some private or home/office use of the vehicle, is there any benefit following the changes in VAT Legislation?	Only 50% of the VAT can be reclaimed if the vehicle is used for any private mileage, however 100% may be reclaimed on the maintenance element of the contract.
Is there any benefit to the customer if the vehicle is returned in excellent condition?	No, this is one of the disadvantages of contract Hire
What happens if the vehicle is returned in poor condition?	Again this is another disadvantage, whilst the finance company will accept fair wear and tear, anything considered outside of this will be charged to the customer.

Key Benefits of Finance Lease
Finance Lease offers the company accurate monthly budgeting and cash flow, minimum capital expenditure and a fixed interest rate.
Frequently Asked Questions	Answers
Who owns the Vehicle?	The Finance Company
Can the Customer ever own the vehicle?	Yes, but only when purchased through a third party. We can arrange the purchase from the Finance Company at the end of the contract.
Who carries the ongoing maintenance risk?	The Customer
Is the vehicle on or off the Balance Sheet?	The vehicle is an asset to the company and is therefore ON Balance Sheet.
Does the customer have to pay the whole cost + interest over the fixed term of the agreement?	No, some customers may wish to make lower monthly payments and pay a "Balloon" or deferred payment at the end of the contract.
Typically, how much cash is required up front as a deposit?	Typically, 3 or 6 months rental in advance.
Can the monthly payments be offset in full against corporation tax?	Yes 100% of the monthly rentals may be offset against corporation tax. For vehicles over £12,000.00 a proportion is disallowed.

Key Benefits of Contract Purchase
Contract Purchase offers the company accurate monthly budgeting and cash flow, minimum capital expenditure, ownership of the asset and a fixed interest rate.
Frequently Asked Questions	Answers
Who owns the Vehicle?	The supplier until the final payment is made
Who carries the residual value risk?	The Supplier
Who carries the ongoing maintenance risk?	The Supplier, assuming that a maintenance contract is taken
Is the vehicle on or off the balance sheet?	On balance sheet
Typically, how much cash is required up front as a deposit?	Typically 6-7% of the purchase price (ie 3 months advance rental
Who arranges delivery and collection of the vehicle?	The Supplier
Does the customer own the vehicle at the end of the contract?	Yes, if they pay the final "Balloon" payment
Can the monthly payments be offset in full against corporation tax?	No, however capital allowances are available as an outright purchase
Assuming some private or home/office use of the vehicle, is there any benefit following the changes in VAT Legislation?	No Benefit

Personal Contract Hire

Key Benefits

This form of funding allows you to run your own car on a similar basis as a company car, without having to pay tax on the benefit. Unlike many company car schemes, you are not restricted in your choice of vehicle. With this package you will also have the provision of the Road Fund Licence for the duration of the contract and most companies insist the contracts include maintenance.

How It Works

You choose the car, you calculate the contract mileage, a deposit is agreed and the contract hire company calculates the monthly rental which is fixed for the term of the contract. The only additional cost will be if the road fund licence is increased, whereby you will be required to pay the increase. The car will be delivered Free of Charge to your chosen destination within the UK mainland. At the end of the contract, the car will be collected with nothing further to pay, provided that you have not exceeded the contract mileage and that the vehicle is returned in good condition. (Excess mileage will be charged in accordance with the contract rates. The Finance company will apply an industry standard of fair wear & tear if damage is outside of this industry standard you will be charged for the cost of repair.) Remember it is important to think about your replacement vehicle at least 3 months before the end of your existing contract.