Provides a fixed monthly rental for a vehicle over a set period and mileage. Road fund licence is included and optional services can include maintenance, replacement vehicle and breakdown recovery. At the end of the contract the vehicle is returned to the leasing company.

You have no depreciation risk, disposal problems or unexpected repair bills. Predictable monthly costs make budgeting easier.

Rentals take into account the vehicle's future residual value so you do not repay the entire capital cost.

Effectively you just pay for the use of the vehicle

The leasing company recovers the VAT on the purchase cost of the vehicle reducing the amount of funding and repayments required. VAT is payable on the rentals. If you are VAT registered up to 50% of the VAT is recoverable on the finance rental unless the vehicle is used solely for business when up to 100% is recoverable. VAT is recoverable in the normal way for any charges for optional services. Vehicles are not shown as an asset on Balance Sheet.

Also available as Personal Contract Hire for individuals.

Comparing the options

The VAT treatment is the same as for contract hire. You can choose between paying the entire cost plus charges over the period of the lease or agreeing to pay a final payment based on the anticipated resale value of the vehicle and thereby reduce the monthly rentals.

You can never assume ownership but may be entitled to a share of the sale proceeds at the end of the lease. These are paid back as a refund of rentals from the sale proceeds should these exceed any outstanding payments.

The risk of the resale value, repairs and maintenance lies with the user.

Vehicles are shown on the company balance sheet.

Comparing the options

VAT is not recoverable unless the vehicle is for 100% business usage. After paying an initial deposit the balance of the purchase price plus charges are repaid over an agreed period by fixed equal monthly payments

The user assumes ownership on completion of the agreement.

The risk of the resale value, repairs and maintenance lies with the user.

Vehicles are shown on the company balance sheet.

Comparing the options

This is treated as a purchase scheme for tax purposes. It is similar to hire purchase but monthly payments can be reduced by paying a lump sum "Balloon" at the end of the agreement. It provides greater flexibility on the monthly amount paid than hire purchase but can result in you having to make up any shortfall if the resale value of the vehicle does not exceed the Balloon payment.

The risk of the resale value, repairs and maintenance lies with the user.

Vehicles are shown on the company balance sheet.

Comparing the options

A purchase scheme that combines the fixed prices and operational benefits of contract hire with the option to own the vehicle at a pre-determined payment at the end of the contract. The monthly payment normally includes road fund licence and as with contract hire optional services can include maintenance, replacement vehicle and breakdown recovery.

The vehicle itself is treated as a purchase for tax purposes. It is most suitable for high value cars where writing down allowances become more advantageous compared to the VAT savings on contract hire or where you would like the option to own the vehicle without bearing depreciation risks.

Also available as a Personal Contract Purchase for private individuals.

Comparing the options

We can arrange short-term vehicles at competitive rates for a commitment of 7 days or more. Rates are even more attractive for a commitment of 28 days or more and can provide the benefits of a fixed cost with the flexibility of returning the car at any time without penalty after the commitment period. Ideal for situations where long term commitment is either not required or where uncertainty makes it undesirable.

Comparing the options