With a Finance Lease you vehicle is hired to your for a fixed period, without your owning it. Following payment of your final monthly rental, the vehicle must be sold to a third party. The rental payments include VAT, which you may be able to recover if you are VAT registered. At the end of the agreement period, three options are available to you:

Retain the vehicle for a further 12 months by extending the agreement. This option may be exercised only once (if your contract is regulated under the terms of the Consumer Credit Act 1974 this option is not available to you).

Sell the vehicle to an independent third party for a fair market value. We will invoice the third party on your instruction and then return 95% of the net sale proceeds to you.

Return the vehicle to us. We will then sell it an return 95% of the net sale proceeds to you, after deduction of auction and collections fees.


Finance Lease Benefits

Use without ownership of the vehicle
Eliminates capital expense
Improved cash flow
VAT reclaimable
You benefit from the net sale proceeds
Rentals allowable against taxable profits (proportionally)


Hire Purchase

You pay a deposit – the actual amount is negotiable – and the remaining cost plus interest charge is repaid by regular monthly payments. You can also choose from fixed or variable interest rates. A variable interest rate means your monthly payments are likely to change from time to time as the amount of interest, which forms part of the monthly payments, is linked to movements in Finance House Base Rate.


Hire Purchase Benefits

Ownership of the vehicle
Flexible deposit
Repayments over a fixed period
Fixed or variable interest rates
Benefits to Businesses Payments not subject to VAT
Interest may be allowable against taxable profits
Writing down allowance are claimable
Vehicle appears as an asset on the balance sheet
Additional line of credit.