FINANCE

CONTRACT HIRE

A great option for companies who emphasise cost control. One regular and VAT- efficient payment will cover most motoring costs and risks, including the Road Fund Licence, depreciation and the eventual disposal of the vehicle. Many clients also choose to include a maintenance package that’s designed to suit them. The only other costs remaining with the customer are fully comprehensive insurance & fuel.

With Contract Hire clients are able to:

• Claim Hire Rental Tax Allowances up to 100% depending on emissions.
• Gain an additional credit line.
• Reclaim the VAT on 50% of their payments and on 100% of their maintenance package costs.
• Run vehicles that are not recorded in the Balance Sheet but on the Notes to the Audited Accounts.

In Summary Contract Hire offers:

• Fixed cost, inflation free motoring.
• No Residual value risk.
• Low initial outlay.
• Cash Flow benefits for business users.
• Ability to renew cars for minimal outlay.
• Allows cars to be kept up to date and vehicle fleet fresh.

FINANCE LEASE

A fixed-term funding option for companies who want to administer their own vehicles with the intention to show these as an asset on their balance sheet.

Companies have two options to choose from in Finance Lease, which are:

- To pay for the entire cost of the vehicle and the interest over the agreed lease period

- To make lower monthly payments by electing to make a deferred – or "Balloon" Payment at the end of the agreement.

Whichever is chosen, clients never take ownership of a vehicle. It must be sold to a third party and a portion of the sale’s proceeds, together with any "Balloon Payment" must be paid to the finance company.

Under the terms of a Finance Lease, companies will:

• Gain a further credit line.
• Combine a low initial outlay with low monthly costs. Reclaim 50% of the VAT on their repayments and claim hire rental tax allowances.
• Show another asset on their balance sheet.
• Have equity in the sale proceeds of the vehicles.

LEXUS PCP

Our most popular funding option on new cars is Lexus PCP. The benefits of using Lexus PCP mean you won't tie up your capital with one big outlay. Also, we're able to give you an immediate decision on your credit application.

How Does It Work?

• You decide how much deposit you wish to pay and then choose your annual mileage band to suit your individual needs. Lexus finance will then forecast the value of the vehicle at the end of the contract period. This becomes the guaranteed future value. As your monthly payments and guaranteed future value are fixed, this enables you to budget more effectively.

What are my options at the end of the agreement?

• You can part exchange your current vehicle and arrange a new Lexus PCP contract. The guaranteed future value is set from day one; therefore at the end of the agreement your car is valued as a part-exchange. Any difference between the two then becomes your deposit for a new car (subject to mileage, condition and status).
• Other options are you can keep the car and pay off the guaranteed future value that was agreed at the start or choose to return the vehicle without further charges (subject to the vehicle being returned on time and meeting the mileage and condition terms set in the agreement).

PERSONAL CONTRACT HIRE

Offers the same benefits as Contract Hire, but for private use. If you want fixed cost motoring, or have opted out of a company car scheme then Personal Contract Hire could be the right choice for you. It provides you with hassle free motoring without the residual value risks associated with traditional ownership.

VAT is built into the monthly payments, but is not reclaimable by private individuals. However, maintenance packages are usually available so that you don't get any nasty surprises.