Car Finance Options
Business Contract Hire
Business Contract Hire (BCH) is suitable for sole traders, partnerships, PLCs and limited companies. It has several key benefits, making it a popular choice.
- 1. BCH is a popular choice for VAT registered businesses as this is a VAT beneficial financing package where a company can claim back up to 50% of the VAT.
- 2. The total cost of running the vehicle will be included in one monthly payment with an optional maintenance package so that all that is left to cover is fuel and insurance ensuring accurate monthly budgeting.
- 3. The Road Fund License is also included within the cost of the monthly payments and once the term of the agreement ends the vehicle is simply returned to the leasing provider.
Personal Contract Hire
Personal Contract Hire (PCH) is for private individuals who want to benefit from driving a brand new car without breaking the bank and worrying about depreciation as the car is simply returned to the finance company at the end of the term. PCH gives the user fixed monthly affordable rentals for a set term ensuring hassle-free motoring.
Finance Lease (FL) is suitable for limited companies, partnerships, the self-employed and sole traders. The vehicle can be leased in one of two ways.
- Option one is to pay the cost of the entire vehicle over an agreed period.
- Option two is to pay lower monthly payments, with a balloon payment at the end of the term.
Up to 50% of the VAT can be reclaimed by VAT registered companies, and the vehicles will show as an asset on your balance sheet. The benefits of finance lease are that there is no excess mileage charges and no damage inspections at the end of the term.
Hire Purchase (HP) is suitable for anybody who would like to own their vehicle at the end of the finance term. In most cases, the customer will usually pay a deposit and pay off the value of the vehicle in monthly installments, with the loan secured against the car and will only own the car once the final payment is made.