Finance Options

What is Hire Purchase?

Hire Purchase is a financing method which allows you to take advantage of fixed monthly payments, and own the vehicle/s at the end of the contract period set. Any loan interest is fully allowable for corporation tax offset.

As the vehicle is being purchased, usually a higher initial deposit would need to be submitted. Also, maintenance and repairs need to be accounted for.

At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Fixed repayment each month
• Title to the vehicle when all instalments have been paid
• Capital allowance of 25% on the cost or WDV (subject to £3,000 max on non-commercial vehicles)
• Loan interest is fully allowable for corporation tax purposes

What is Lease Purchase?

Lease Purchase is a method of purchasing a vehicle utilising fixed monthly instalments.

Monthly instalments can be reduced with the addition of an end of contract balloon payment, which can be paid off in full if you wish to retain the vehicle, re-financed if preferred or retrieved via the sale of the vehicle if the vehicle is no longer required for your fleet (depending on balloon value compared to residual/sale value of vehicle).

At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Fixed repayment each month
• Initial deposit can be small
• Title to the vehicle when all instalments have been paid
• Capital allowance of 25% on the cost or WDV (subject to £3,000 max on non-commercial vehicles)
• Loan interest is fully allowable for corporation tax purposes
• A terminal payment (balloon) can be incorporated

What is a Finance or Operating Lease?

A Finance Lease, commonly referred to as an Operating Lease, is a Finance agreement with fixed monthly repayments based on a new vehicle, or a vehicle up to 18 months old. Finance or Operating Lease agreements do not include the provision for maintenance or repairs outside of the manufacturer's warranty, so this provision needs to be taken into account.

At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Available on new vehicles and those up to 18 months old
• Fixed repayment each month
• Initial deposit can be small
• The rentals are allowable for corporation tax purposes (see note below)
• A secondary (peppercorn) finance period can be made available
• The leasing company can recover VAT on the capital cost, thus reducing the monthly payments

What is Contract Hire?

Contract Hire is a very popular method of funding vehicles and can have lots of benefits attached.

At Motor Contracts we completely analyse your fleet requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Fixed monthly costs
• Off balance-sheet funding
• Optimum cash flow
• No risk on disposal
• No risk on maintenance
• Reduce management and administrative burden
• VAT efficiency
• Corporation Tax efficiency

What is Personal Contract Purchase (PCP)?

PCP is a very popular way for individuals to use a car of choice whilst only paying off the depreciation value monthly, as opposed to paying for the whole vehicle.

At the end of such an agreement, you can decide to walk away from the contract with no re-sale or residual value worries, or you can purchase the vehicle outright at the end of the contract. The balance payable if you decide to purchase the vehicle outright can also be re-financed.

At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Fixed prices - You know exactly what you have to pay each month, which can help you set and keep to a budget
• Initial down payment - Usually only a small deposit is required, typically lower than a Hire Purchase agreement
• Optional balloon payment determined at the outset based on the residual value. This allows a customer to take ownership of the vehicle at end of the contract term or return it to the leasing company
• If you prefer you can refinance the balloon payment at the end of the term
• Flexibility - For drivers looking to change their vehicles every two or three years, PCP provides an easy way to do so
• Maintenance packages - Most personal contract purchase agreements exclude maintenance, however we can put together a maintenance package for you on request (at extra cost).
• No depreciation concerns - It is not necessary to buy the car at the end of the term so you can still choose to walk away and without re-sale concerns
• Low monthly deposit and low monthly payments can give you access to more 'upmarket' or aspirational vehicles

What is Short Term Flexible Hire?

Short Term Flexible Hire is exactly as it sounds, and with flexibility at the core of our business model this is a great option for short term employees, probationary periods or companies that have regular peaks and troughs in workload.

Advantages

• Flexibility - Cars can be leased on a short term rolling contract which can provide great flexibility
• Ideal for fluctuating requirements - If you hire staff on probationary periods or your vehicle needs differ from month to month, short term car leasing can provide an ideal solution
• Fixed cost motoring - Short term leasing allows you to budget for the period of each knowing exactly what you monthly outgoings will be
• Road Fund Licence - Will be incorporated into the agreement
• More cost effective than taking out long term daily rental

What is Direct Purchase?

Direct Purchase is the process of purchasing a vehicle outright. Motor Contracts can help with this as we can take advantage of our contacts, network and buying power to secure more favourable deals on new and used vehicles, saving you time and money.

At Motor Contracts we completely analyse your requirements and tailor our offering to suit you, providing you with absolute transparency throughout the process, allowing you to make educated decisions that best work for you or your business.

Advantages

• Through our dealerships - Ford, Kia and Mitsubishi, we can take the hassle and stress out of selecting and purchasing a vehicle for outright ownership
• We can source, supply and deliver both new & used cars and light commercial vehicles
• Vehicles can be purchased outright from our extensive network of quality approved suppliers
• We will negotiate the best price on your behalf
• Fleet discounts can be passed onto you the customer
• You will have the benefit of our expert advice and guidance throughout the process
• You can do what you like with the vehicle once purchased from us - it's yours