HIRE PURCHASE - LEASE PURCHASE

The most basic method of purchasing a car, simply borrow the money using the vehicle as security. Pay the whole amount back over any period up to 60 months at a fixed rate of interest.

Lease purchase is simply a hire purchase agreement where an amount of capital (residual value) has been offset until the end of the agreement. This will have the effect of reducing the payments over the period. Similar to Personal Contract Purchase, however, there is no guarantee on the residual value so you won't have the option of handing the vehicle back at the end of the contract.

LEASING

Only available to business users.

A basic rental agreement where the whole value of the vehicle is paid back over the period, with or without a residual value. At the end of the agreement the vehicle is sold by you, on behalf of the leasing company, and a percentage of the sale proceeds, usually 95 - 100% are retained by you as a 'rebate on the rentals already paid'. For leases without a residual value at the end of the period they can usually be extended for a nominal annual payment.

Contract Hire is a specialist type of leasing agreement where a third party (the Contract Hire Co) guarantees to take the vehicle back at the end of the agreement and is hence taking the risk on it's future value.

Leasing has all the VAT and tax benefits of Contract Hire but the vehicles future value is not guaranteed. Leasing can be perfect for vehicles that are of a specialized nature, particularly commercials that could give your company good service for longer periods.

VEHICLE SUPPLY

As we have access to the best 'fleet' purchasing terms on new vehicles we are able to assist with straight vehicle supply on most makes. 'Fleet' terms are the discounts given to the major fleet purchasers by the vehicle manufacturers. As these companies buy a huge number of cars, they are able to get much better savings than a retail customer could negotiate and we are able to pass these savings on to you, our client.

We also have direct access to defleeted company cars, demonstrator vehicles, daily hire cars etc at trade prices. Yet again these vehicles can be incorporated into all our facilities and can offer excellent value.