A contract for businesses and professionals with optional maintenance and a choice to return or buy at the end of the contract period.
The customer purchases a vehicle by monthly instalments covering the cost of the vehicle and an interest element. The monthly fee will include any charge for additional services such as maintenance. There is usually a final balloon payment and on payment of this legal ownership passes to the user and they can choose to keep or sell the vehicle. Alternatively the vehicle may be handed back to the finance company.
Ownership, for tax purposes, passes to the user on the day the contract is signed meaning that its cost can be written down on the balance sheet by claiming capital allowances.

Features and benefits:

  • Contract periods can be selected from between 24 months and 60 months, with or without a balloon payment at the end of the contract (subject to the age of the vehicle at the start of the contract)
  • Choose from any make or model of vehicle, new or nearly new
  • Road Fund Licence is provided throughout the contract period
  • Fixed monthly rentals allow for accurate monthly budgeting
  • You may be able to refinance the OFP
  • No depreciation concerns if you wish to walk away at the end
  • Maintenance and/or Breakdown & Recovery can be incorporated into the monthly payment
  • Fixed OFP when you first take the contract out
  • Cost effective
  • At the end of the contract the final payment is guaranteed, giving you the option to simply return the vehicle at no extra cost, assuming no more than the total contract mileage is covered
  • You also have the option to buy the vehicle at the end of the contract for the guaranteed final payment. You may wish to then sell the vehicle, thereby allowing you to benefit
  • from any equity in the sale

Things to be aware of:

  • You bear the cost of any excess mileage
  • You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or keep it
  • You must have fully comprehensive vehicle insurance