Vauxhall Contract Hire & Leasing

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 opportunity 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.

Contract Hire is the leasing of a vehicle, normally to a VAT registered business, for a set time from 12 to 60 months and specified mileage. At the end of the contractual period the vehicle is returned to the supplier.

You are required to pay a fixed amount each month over the life of the contract .

There is 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.

This method of funding is ideal for companies that cannot fully reclaim VAT

It 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.

You would make fixed monthly payments over the life of the agreement with an initial fee (usually equivalent to three months rental) up front.

At the end of the contracted period you have the opportunity to buy the vehicle by paying a final pre-determined balloon payment, at which point ownership of the vehicle would be transferred to you.

Although this method protects you from the risk of depreciation you would be responsible for administering, maintaining and, in particular, disposing of the vehicle(s).

Finance Lease is a VAT free 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.