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UK Vehicle Leasing from Leasesave couldn't be easier. We are a leading UK vehicle leasing provider based in Nottinghamshire serving the UK Vehicle Leasing Market from the East Midlands. For further information call 0875 067 6667 or navigate this site for a comprehensive insight, why not request an online new vehicle leasing quotation today?
UK Vehicle Leasing couldn't be easier. New or used vehicles for a fixed monthly rental cost from Leasesave offering vehicle leasing from a special range. Terms flexible enough to meet the needs of every business or private user. Contract Hire enables companies to release cash normally tied up to outright purchase vehicles, and allows low initial payments followed by fixed all-inclusive monthly rentals for service, maintenance and repairs if required. The low regular payments attributed to Contract Hire are partly due to lenders being able to reclaim the VAT on the purchase price of a vehicle, thus allowing savings to be passed on to you by way of reduced monthly rentals.
Fleet & Business sales acount for 50% - 60% of the all new car market, Contract Hire has a market share of almost 45 - 50% of this market and is still rising. Contract Hire companies calculate monthly rental costs based on the original capital costs, current interest rates, future residual value's and optional equipment which is then recalculated based on the contract hire agreement required by the client such as; pre-determined period of the contract (e.g. 2yrs / 3yrs), pre-determined mileage to be covered (e.g. 10,000 / 20,000 p.a) and additional services you require such as; Service Maintenance & Repairs (SMR), Replacement Vehicle, Fleet Management etc...
At the end of the contract hire agreement the vehicle is returned to the leasing provider with no further obligation on the users behalf (subject to terms and conditions of the contract). You need to pay attention to any additional costs such as; excess mileage charges, this may be charged if you exceed the pre-determined mileage set at the start of the contract hire agreement (e.g. 10,000 / 20,000 p.a). Also, if there is any unfair wear and tear (not including accident damage) this may also be a cost, some of the best companies offer an excess of £150 or so, no charge fee but others will charge for most repairs required to bring the vehicle up to the BVRLA standards (British Vehicle & Rental Leasing Association).
Consider the benefits of Contract Hire
• Low initial payment
• Flexible rental pattern
• Fixed monthly costs which can include maintenance
• More capital available for your core business
• Off-balance sheet borrowing
• No depreciation risk
• No disposal problems
• VAT on rentals reclaimable (subject to use only 50% if private use)
• 100% VAT on Maintenance
• Administration & Management transferred to provider
Finance Lease
Finance Lease is a vat free method of financing a vehicle, usually for VAT registered businesses and companies. The monthly rental is determined by the cost of the vehicle, the period and the estimated future value of the vehicle, which is based on the proposed annual mileage. A payment equivalent to the estimated future value is payable at the end of the contract.
At the end of the contract period, the vehicle is sold and the proceeds returned to the Lessee. Maintenance packages are often available, if required.
Contract Purchase
Contract Purchase provides the same operational benefits of Contract Hire, with the main difference being that the vehicle is on the balance sheet.
In the same way as in Contract Hire, the terms for contract purchase are based on pre-arranged contract length and age and mileage on return, which in turn will establish the residual value or balloon payment and offers the ability to defer this value until the end of the agreement. Again as with Contract Hire you have a low initial payments and an attractive monthly rental with the option of a maintenance package. Contract Purchase is available for both new and used cars (up to four years old). At the end of the agreement you have two main options.
1. Pay the Balloon Payment in full and take ownership
2. Return the vehicle back to the provider with nothing else to pay
Your monthly payments are allowable against tax. You are also allowed to reclaim 100% VAT on the maintenance element.
Benefits of Contract Purchase
• Low initial deposit
• Fixed monthly payments
• Writing down allowance
• Interest charges can be offset against tax
• No risk on residual value
• Optional final payment
• No restriction on make or model
• Alternative credit line
Lease Purchase
Lease Purchase is an ideal alternative to bank borrowing for businesses that are not VAT registered and who want eventual owner
