We have developed good contacts within the trade and may be able to help you source vehicles. Please contact us to discuss further.
Loan Terms and Lending Criteria
As with standard Operating Leases, there is no large deposit requirement. Typically, a deposit is a single monthly payment.
Monthly rental payments will cover the cost of the vehicle(s) including VAT, the road fund license and can also incorporate a maintenance payment.
At the end of the agreement, vehicles are simply be returned to the supplier. You may be offered a discounted purchase at this point, but there is no obligation to buy. The vehicle return is governed and protected through the British Vehicle Rental and Leasing Association.
Pricing and Fees
Pricing is largely determined by the credit quality of the business and the asset quality. Set up costs are typically low, with an administrative fee often paid with the first monthly rental.
Ownership of the vehicle stays with the supplier and therefore the asset(s) never features on the company’s balance sheet. Costs associated with Contract Hire are accounted for through Profit and Loss, therefore monthly rentals can be used to offset against Corporation Tax.
