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Also referred to as Contract Hire, leasing is simply a long-term rental agreement. Providing a cost-effective way to fund any number of vehicles, whether for a business or private individual.

 

Once exclusive to businesses, in recent years leasing companies and fleet departments have opened their facilities for everyone to enjoy. Allowing private individuals to take advantage of discounts once only available to businesses.

 

Leasing is a flexible product, allowing a larger initial payment to help reduce monthly payments. Standard contracts range from 24 to 48 months and can be tailored to individual requirements and annual mileage expectations. - As a rule, the more miles you do, the higher the monthly rental will be.

 

Affordability is important when financing your vehicle. Despite there being no option to purchase, leasing does provide a comparatively low monthly rental when considering a vehicle’s list price.

 

Allowing you to drive a brand-new car and try something new every 2 to 4 years, without the risk of depreciation. Leasing has none of the hassle or financial risk of having to sell or part-exchange.

 

 

Leasing for businesses. Business Contract Hire or Leasing (BCH)

 

Advantages of BCH

·        Minimum capital expenditure - improved cash flow.

·        Accurate monthly budgeting.

·        VAT-registered companies can claim back 50% of the VAT for cars and usually 100% for vans (subject to no private use).

·        No disposal worries. The future value is underwritten by the funder… Simply hand the vehicle back to the funder at the end of the contract.

·        Fixed interest rates.

·        Ability to offset some (or all) costs against profits.

·        Ongoing support and less administration.

·        Road Fund Licence included throughout contract.

·        Option to include maintenance, servicing, MOT, tyre-replacement & puncture repair, plus full breakdown cover.

 

Disadvantages of BCH

·        Early termination costs.

·        Fixed annual mileage - excess mileage costs.

·        No option to purchase.

·        Charges incurred if vehicle is returned outside of BVRLA Fair Wear and Tear Guidelines.

·        You could be left with a vehicle on contract should staff leave.

·        Your business circumstances could unexpectedly change during the contract, which might result in the vehicle becoming unsuitable for its original purpose.

 

 

Leasing for private individuals. Personal Contract Hire or Leasing (PCH)

 

Advantages of PCH

·        Accurate monthly budgeting.

·        No disposal worries. The future value is underwritten by the funder… Simply hand the vehicle back to the funder at the end of the contract.

·        Fixed interest rates.

·        Road Fund Licence included throughout contract.

·        Option to include maintenance, servicing, MOT, tyre-replacement & puncture repair, plus full breakdown cover.

·        Drive a new and reliable car.

·        When the contract comes to an end choose an upgrade or try something different.

 

Disadvantages of PCH

·        Early termination costs.

·        Fixed annual mileage - excess mileage costs.

·        No option to purchase.

·        Charges incurred if vehicle is returned outside of BVRLA Fair Wear and Tear Guidelines.

·        Personal circumstances could unexpectedly change during the contract, which might result in the vehicle or mileage allowance becoming unsuitable for its original purpose.

 

 

We think leasing simply makes sense.

However, it might not be a suitable funding option in some cases.

The above is for informational purposes only, to assist you when considering leasing a vehicle. It is important to consider the disadvantages and the product suits your financial and driving needs. If you are a business user, you should consult your accountant prior to entering into a leasing agreement to confirm it suits your business needs.

 

 

Consider other options.

Whilst we only offer leasing, there are other funding methods available, each with their own advantages and disadvantages. We have included some examples below.

 

Finance Lease (FL)

Usually a popular funding option for commercial vehicles or high mileage needs, you will have to dispose of the vehicle at the end of the contract and you have no option to purchase. We can arrange Finance Lease contracts on request.

More about FL

 

Personal Contract Purchase (PCP)

Giving you the option to purchase the vehicle at the end of the contract or hand it back to the finance company. We do not offer this product.

More about PCP

 

Lease Purchase (LP)

For those who want to be committed to purchase.at the end of the contract by paying a balloon. A flexible product, allowing a larger initial payment to help reduce monthly payments. We do not offer this product.

More about LP

  • bvrla
  • Arval
  • ALD Automotive
  • Lex Autolease
  • Ogilvie Fleet Limited