Finance Explained

Hire Purchase
This traditional payment method is favoured by many customers.

Easy to understand payment option that lets your customers take ownership at the end of the finance period.
Fixed monthly payments.
Fixed term 12-60 months (up to 120 months for some Leisure agreements) .
Fixed interest rate from day one.
Acceptance fee payable at the start.
Early settlement allowed (penalties may apply).
Approx 10% deposit normally required.

Lease
Allows your business customers to avoid the risk of depreciation and disposal while still sharing in any profit when the vehicle is sold.

Customers can achieve maximum vehicle usage with minimum initial outlay.
Customer doesn't own vehicle at the end.
Similar to vehicle rental.
Rental plan to suit business cash flow.
Part of the VAT is recoverable.
Can appear on balance sheet.
Percentage refund on vehicle sale.
Highly tax efficient.
Keeps existing credit lines open.

Contract Hire
A popular option that allows business customers to benefit from a low initial outlay, low monthly payments and with the option to include maintenance, with none of the risks of depreciation and disposal. Available for new vans and used vans up to 2 years old.

Low monthly outlay compared to other products you may be offering your customer, for example Hire Purchase, if ownership is not a requirement.
Low rate fixed rentals protect your customer's business from interest fluctuations.
Part or all of the VAT may be recoverable.
Off-balance sheet funding.
Accurate budgeting.
Keeps existing credit lines open.