Funding Options

Why Lease Rather Than Buy?

With new vehicle prices continually rising and the residual value of used vehicles falling, the monetary cost of owning a car is on the increase. Because of this trend, it is widely accepted that there is little or no benefit in purchasing most new vehicles outright due to steep depreciation of the asset. For this reason more and more of today’s forward thinking companies are looking for a better financial solution to vehicle acquisition.
Choosing one of our lease options will give you the right to use a vehicle be it car or commercial on pre-agreed terms. With fixed term and low monthly rental they allow for accurate company budgeting, minimal administration and improved cash flow.

For Company Purchase:

Contract Hire is the leasing of a vehicle, normally to a vat registered business, for a set time and specified mileage. At the end of the contractual period the vehicle is returned to the supplier.

The client is required to pay a fixed amount each month over the life of the contract with an initial fee, usually equivalent to three months rental, required up front. Roadside rescue, maintenance, and relief vehicle provision are optional extras, which can be included and charged to the monthly rental payment.

Contract hire removes all the risks associated with vehicle ownership- depreciation, servicing, disposal etc, and because the vehicle(s) is owned by the finance company it does not have to be shown as an asset on the company’s balance sheet, giving improved financial gearing for core business investment.

Contract Purchase This method of funding is ideal for companies who cannot fully reclaim vat and is particularly suitable for financing the more expensive cars on the fleet. It offers all the operational and managerial benefits of contract hire together with the tax-efficient benefits of ownership, such as the ability to claim capital allowances.

The client makes fixed monthly payments over the life of the agreement with an initial fee usually equivalent to three months rental up front and at the end of the contracted period have the opportunity to buy the vehicle by paying a final pre-determined balloon payment, legally transferring ownership to them. Although this method protects the client from the risk of depreciation they will still be exposed to the risks inherent in administering, maintaining and in particular, disposing of a fleet.

Finance Lease is a vatable method of financing a vehicle traditionally used by VAT registered companies. It allows you many of the benefits available from Contract Hire whilst the risk and responsibility of the disposal of the vehicle at the end of the lease period remains with you.

A Finance Lease can be structured in two ways, you can either choose to pay the entire cost over the agreed lease period plus interest charges or you can pay lower monthly payments with a deferred “Balloon” payment at the end of the agreed term.

As a form of lease, ownership of the vehicle remains solely with the supplier. However the surplus proceeds from the sale of the vehicle (whether you opt to sell the vehicle or ask the supplier to sell it on your behalf) go to the client.

Lease Purchase is a method of financing a vehicle, normally for vat registered companies or businesses, it allows a business to acquire ownership of the vehicle at the end of the contract agreement once the “option to purchase” final payment has been made. The monthly rental is determined by the cost of the vehicle, the agreement period and the estimated future value of the vehicle, which is based on the proposed annual mileage. Maintenance packages are usually available if required.

Lease purchase is a cheaper monthly alternative to hire purchase, the traditional method of financing, and is written on a hire purchase agreement with the protections afforded by the consumer credit act.

Sale and Leaseback is for companies looking to generate capital from the sale of their vehicles whilst retaining their use. Your fleet is purchased at an agreed realistic market value and is then leased back to you through a funding method of your choice. This vat beneficial scheme can provide a welcome injection of cash into a business.

Daily Rental:

Daily Rental operates in the same manner as traditional contract hire, but as the name suggests offer contracts for shorter periods. This method is suitable for companies with members of staff on probationary periods, or when vehicle requirements fluctuate. Daily Rental provides an excellent stopgap solution.

For Private and Company Purchase:

Hire Purchase is the traditional way of owning a vehicle by making monthly repayments. It is most likely that you will need to pay an initial deposit (depending on the finance company). Either way, monthly repayments are made for an agreed time and after the final repayment the car is legally yours. Until such time it legally belongs to the finance company, There are two main types of hire purchase scheme:-

Fixed- interest hire purchase: monthly repayments remain fixed throughout, Or,

Variable-rate hire purchase: monthly repayments increase when interest rates rise, and decrease when interest rates fall.

For Private Purchase:

P.C.P/Personal Contract Purchase is highly attractive and increasingly popular, combining fixed low monthly payments with flexibility at the end of the agreement, allowing you to either buy the vehicle (by paying an agreed minimum residual value), part exchange it for another vehicle, sell it privately (settling the balloon payment) or subject to mileage and condition return the vehicle with nothing more to pay.

PCP is also ideal if you are opting out of a company car scheme. You use your company car allowance to fund your PCP monthly payments without paying company car tax. This option allows the employee or individual to benefit from fleet discounts and our bulk purchasing power, resulting in lower monthly payments so you can choose a higher specification vehicle.


Personal Contract Purchase is a legal contract with is covered by the Consumer Credit Directive.

If you require any information or sample documents please contact us-

of popular interest is Early Termination-

Can I hand my car back before the end of the lease?

This is covered by the industry “HALVES & THIRDS” rule:

Where a customer is signing a regulated Hire Purchase agreement, whether fully amortised or with a final “Balloon” payment you have two specific rights, commonly called “Halves & Thirds”. This means that you:-

1. Have the right to “Voluntary Terminate” (VT) the vehicle and return it to the creditor (Fair Wear & Tear, excess mileage & collection rules apply) and pay no more provided that you have paid at least one half of the total amount payable under the agreement (on PCP this included the final payment amount). This amount will be stated on your customer’s schedule.

2. Once you have paid at least one third of the total amount payable under the agreement, the creditor cannot repossess the vehicle without a court order. However, under Scottish law, in Scotland a court order is always required for repossession.

If you are in any doubt, please ask us, we are here to help.


Personal Contract Hire is designed for people who don’t want the bother of ownership or the expense of short-term rental. It delivers all the benefits of a company car to private purchasers at a fixed monthly rental over an agreed term. At the end of the contract term the vehicle is returned to the finance company with nothing further to pay (provided that contract mileage has not been exceeded) taking away the hassle of selling privately and the worry over unexpected levels of depreciation.

Non Status Finance  Credit problems?

Do you have credit problems or historical financial difficulties?

If so, we need to know from the outset: it will influence where we place your credit underwriting. Please tell us your situation from your initial contact - we will help if we possibly can.

Unfortunately, if you are declared bankrupt, are in a debt re-management plans or are in an IVA, funders will not support your application for finance, and sadly, we will not be able to help you.

If you have Late payments or County Court Judgements, we may be able to help you by introducung a specialist funder, please call us to discuss.

Untitled Document

All pictures and/or photos and car descriptions on this site are for illustration and reference purposes only and are not necessarily the vehicle on offer. All offers are subject to change at any time and are subject to finance approval and vehicle availability. All prices correct at time of publication. E & OE.