Vehicle Funding Options:
Here at Great Bristol Vehicle Leasing we offer a number of packages to suit a variety of business needs, we will happily talk you through your options, give you a quick decision and endeavour to beat any other package that you have been offered.
- Contract Hire
- Contract Purchase
- Finance Lease
- Lease Puchase
- Drivewise: Personal Contract Purchase (PCP) for private individuals
We pride ourselves on giving all our clients friendly honest advice and a personal service that will make the process straight forward and easy.
Contract Hire is a popular choice amongst companies seeking to remove assets from their balance sheet, eliminate the financial risk associated with disposing of their vehicles and benefit from the convenience of a full maintenance service (optional) all at a fixed monthly cost. Contract Hire also allows companies to reclaim 100% of the VAT on the servicing element of the rental cost, and 50% of the VAT on the finance rental cost.
There is a wide choice of financial arrangements available to companies when sourcing a vehicle, but the continued growth in the Contract Hire market suggests that this funding method will remain the preferred choice for companies in the future.
At the end of your Contract Hire contract term (18mths – 5 years) there are various options open to you. You will need to decide whether you wish to keep your current company vehicle (restrictions apply to this, see diagram) or dispose of it. One thing to note is that, under Contract Hire, the customer is never entitled to purchase the vehicle from Network, it must be sold to an unconnected third party at the end of the contract.
Finance Lease is a popular product which provides you with funding only. However, the customer is never entitled to purchase the vehicle from Network – it must be sold to an unconnected third party when you have finished with it. As the user of the vehicle, you bear the risk of what it may be worth at the end of the contract (when it is sold) when compared to the final rental owed to Network. Therefore, many customers manage this risk element by requesting a ‘Balloon' rental that is less than the predicted Residual Value (predicted value of vehicle at end of term), creating a ‘safety' margin.
At the end of your Finance Lease contract term there are various options open to you. You will need to decide whether you wish to keep your current company vehicle or dispose of it. Whatever you decide we are dedicated to helping you with this.
Lease Purchase is an agreement designed to offer dedicated vehicle funding where the customer wishes to purchase the vehicle. It is purely a finance package, and does not include maintenance or other added value services (such as those available through Contract Purchase).
The customer is liable for the full value of the vehicle and has no option to return it at the end of the agreement. Monthly payments are not subject to VAT. The vehicle is registered in the name of the customer, and where this is a company, the vehicle will appear on the balance sheet, and writing down allowance will be available.
At the end of your Lease Purchase contract term there are various options open to you. You will need to decide whether you wish to pay your ‘Balloon' payment now or to defer the purchase of your vehicle further by extending the finance for a further period. Whatever you decide we are more than happy to advise you on the best option for your needs.
Contract Purchase offers you many of the ‘no risk' advantages of Contract Hire, coupled with an optional service and maintenance package. It also enables the vehicle to be purchased at the end of the agreement for a guaranteed price.
The vehicle is registered to the Lessor's name and will therefore appear on the company balance sheet as an asset. Writing down allowances can be claimed. VAT is charged only on the servicing element of the monthly payment.
At the end of your Contract Purchase contract term there are various options open to you. You will need to decide whether you wish to purchase your current company vehicle, or dispose of it. Whatever you decide, we are more than happy to advise you on the best option for your needs.
Drivewise – (PCP for private individuals):
Drivewise is Network's personal contract purchase product. Drivewise is currently the only product specifically tailored to the needs of the private motorist. It is a conditional sale agreement which allows you the option to purchase the vehicle, or to simply hand it back at the end of the contract period (subject to settlement of any excess mileage and unfair ‘wear and tear').
You can elect to include the same comprehensive service, maintenance and repair options as are available through Contract Purchase, although you will be responsible for the annual Road Fund Tax.
Finance payments are not subject to VAT. If the optional service package is taken, VAT is payable on the service costs.
At the end of your Drivewise contract term there are various options open to you. You will need to decide whether you wish to complete the purchase of your current vehicle, or return it and take out a new contract on a new vehicle. Whatever you decide, we are more than happy to advise you on the best option for your needs.
For further clarification on all the above finance packages just call 0117 962-54-50 and we will be happy to help and offer guidance based on your needs and requirements.