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Choosing Your
Funding Method
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Contract Hire |
Contract Purchase |
Hire/Lease Purchase |
Finance Lease |
Personal Leasing |
Outright Purchase |
| Accurate monthly budgeting |
• |
• |
• |
• |
• |
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| Improved cash flow |
• |
• |
• |
• |
• |
|
| Minimum capital expenditure |
• |
• |
• |
• |
• |
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| Fixed interest rate |
• |
• |
• |
• |
• |
N/A |
| Capital allowances available |
|
• |
• |
|
N/A |
• |
| Rental allowable against
taxable income |
• |
|
|
• |
N/A |
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| Ownership of vehicle
+ |
|
•++ |
• |
|
•++ |
• |
| VAT charge on rentals |
• |
|
|
• |
|
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| VAT recoverable on monthly
rentals |
•* |
|
|
•* |
|
|
| VAT recovered on purchase
cost by Network and passed on to customer in lower rental |
• |
|
|
• |
|
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| No depreciation rates |
• |
• |
|
|
• |
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| No vehicle disposal
problems |
• |
• |
|
|
• |
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| Reduced administration |
• |
• |
• |
• |
• |
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| On-going advice/support
|
• |
• |
• |
• |
• |
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| Road fund licence provided |
• |
• |
|
|
•** |
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| Breakdown rescue cover |
• |
• |
|
|
• |
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| Replacement vehicle
in case of breakdown |
• |
• |
|
|
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| Fixed charge maintenance
++ |
• |
• |
|
|
• |
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| VAT chargeable on services |
• |
• |
|
|
• |
• |
| VAT recoverable on services |
• |
• |
|
|
N/A |
• |
| Optional GAP insurance
*** |
• |
• |
• |
• |
• |
|
+ At end of contract with financing
products.
++ Optional.
* Only 50% of the VAT relating
to the finance element is recoverable if private use. 100% if
only business use. 100% of the service element VAT is recoverable
if business use.
** Road fund licence is provided
for the first year only.
*** GAP insurance covers the
short-fall between the write-off and value at time of loss.
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