| Sterling | Vehicle Funding |
| Finance |
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In this section you will find a brief detail of the some of the funding facilities that we provide. This method has traditionally been used by VAT Registered businesses, for whom the use of the car is more important than the ownership. With Finance Lease (unlike Contract Hire) the lessee shares in the profit or loss on the sale of the car at the end of the agreement. Finance Lease Also consists of the tax advantages mentioned below for Contract Hire customers. Many businesses can benefit from leasing cars over a fixed period. By establishing an anticipated future value to be paid at the end of the agreement, your business can enjoy lower monthly rentals throughout the period and reclaim at least 50% of the vat. Contract Hire Contract Hire provides business customers a trouble free and cost effective way to run business vehicles. Fixed monthly costs allow you to budget cash flow more accurately, particularly with full maintenance option that covers routine servicing and maintenance, emergency service, road fund licence renewal and the provision of a relief vehicle in the unlikely event of a mechanical breakdown. You select the vehicle of your choice and depending on the contract period we will ask you to pay a number of rentals in advance. All items are optional an can be tailored to fit individual requirements. In order to ensure there are no unexpected bills at the end of the month. Provided you have met the terms & condition of the agreement at the end of the contract period you then simply hand the car back. Lease Purchase If you like the repayment pattern of leasing but want to won the vehicle at the end of the agreement, Lease Purchase could be just right for you. Lease Purchase is an enhanced form of Hire Purchase. VAT is not charged on the monthly payments, so it is particularly suited to non Vat registered businesses. The advantages for many conclude a low deposit and reduced monthly payments. This is possible because the anticipated vehicle value at the end of the agreement is deferred to one final payment. Personal Contract Purchase Similar to Contract Hire, the contract has a low initial payment (usually 3 monthly payments) followed by fixed monthly payments for an agreed period with a agreed set mileage for the contract duration. At the end of the contract period there is a guaranteed future value that you have the option of paying to take ownership of the vehicle, or hand back without penalty as long as the vehicle has not exceeded the agreed mileage. An excess mileage charge will be levied as agreed at the beginning of the contract. Hire Purchase The simplest and most flexible form of finance is Hire Purchase, can be used for most types of asset. For many businesses, ownership of assets is important and Hire Purchase allows ownership to be acquired over an agreed period of time in a way which can be self-financing by matching earnings with monthly or quarterly installments. The customer retains all rights to the benefits of tax allowances and grants. These facilities provide the same benefits as are available from conditional sale, lease purchase and other similar market products.
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