CONTRACT HIRE
Contract Hire is a great option for companies who emphasise cost control. One regular and VAT- efficient payment will cover most motoring costs and risks, including the Road Fund Licence, depreciation and the eventual disposal of the vehicle. Many clients also choose to include a maintenance package that’s designed to suit them. The only other costs remaining with the customer are fully comprehensive insurance & fuel.
Contract Hire means that clients:
- Gain an additional credit line.
- Can reclaim the VAT on 50% of their payments and on 100% of their maintenance package costs.
- Run vehicles that are not recorded in the Balance Sheet but on the Notes to the Audited Accounts.
- Can claim Hire Rental Tax Allowances.
In Summary Contract Hire offers:
- Fixed cost, inflation free motoring.
- No Residual value risk.
- Low initial outlay.
- Cash Flow benefits for business users.
- Ability to renew cars for minimal outlay.
- Allows cars to be kept up to date and vehicle fleet fresh.
PERSONAL CONTRACT HIRE
Personal Contract Hire, as its name suggests, is essentially the same, and offers the same benefits as Contract Hire, but for private individuals. If you want fixed cost motoring, or have opted out of a company car scheme then Personal Contract Hire could provide you with hassle free motoring without the residual value risks associated with traditional ownership.
VAT is built into the monthly payments, but is not reclaimable by private individuals. Maintenance packages are usually available so that you don't get any nasty surprises.
Personal Contract Hire benefits are:
- Allows you to hire new or used vehicles,
- Includes a full-term Road Fund Licence
- Can include a full maintenance package that takes all the worry out of motoring.
PERSONAL CONTRACT PURCHASE
Personal Contract Purchase suits people who want to own the vehicle at the end of the contract and who value expense control. It is an excellent option for those who have opted out of a company car scheme or for non-VAT registered companies. This is a variation on lease purchase where the ‘balloon’ or deferred payment is agreed and guaranteed.
Personal Contract Purchase means:
- A low deposit.
- Payments that can be reduced by a deferred ‘balloon’ payment.
- An option to own the vehicle at the end of the contract.
- No disposal or unexpected ‘balloon’ payment risks.
- The option to refinance the balloon payment at the end of the contract.
CONTRACT PURCHASE
Ideal for companies who cannot fully reclaim VAT and is particularly suitable for financing the more expensive cars on the fleet, typically those costing more than £25,000.00
The big difference between Contract Purchase and Contract Hire is that there is the opportunity to buy the vehicle at the end of the contract period. You have the option of paying a 'balloon payment' at the end of the contract which makes you the legal owner or alternatively you can return the vehicle to the funder.
Contract Purchase offers all the operational, managerial and administrative benefits of Contract Hire, together with the tax-efficient benefits of ownership, such as the ability to claim capital allowances.
FINANCE LEASE
Finance Leasing is a fixed-term funding option for companies who want to administer their own vehicles and who want to show these as an asset on their balance sheet. Companies choose from 2 options:
- To pay for the entire cost of the vehicle and the interest over the agreed lease period or
- To make lower monthly payments by electing to make a deferred – or “Balloon” Payment at the end of the agreement.
Whichever is chosen, clients never take ownership of a Finance Leased vehicle. It must be sold to a third party and a portion of the sale’s proceeds, together with any “Balloon Payment” must be paid to the finance company.
Under the terms of a Finance Lease, companies will:
- Gain a further credit line.
- Combine a low initial outlay with low monthly costs.
- Reclaim 50% of the VAT on their repayments and claim hire rental tax allowances.
- Show another asset on their balance sheet.
- Have equity in the sale proceeds of the vehicles.
PEUGEOT PASSPORT PRO
Your Peugeot Your Choice
If you were thinking of paying for your commercial vehicle by cash or using a bank or building society you may wish to think again!
The benefits of using a Peugeot finance plan means you won't tie up your capital with one big outlay and we can give you an immediate decision on your credit application.
Our most popular funding option on new cars is Peugeot Passport Pro, let us explain how this works.
How Does It Work?
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You decide how much deposit you wish to pay which is usually 0%-20%
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You then choose an annual mileage band which best suits your needs from 6000-25000
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Peugeot will then forecast the value of the vehicle at the end of the contract period, which will become the Guaranteed Future Value underwritten by Peugeot Financial Services.
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You then pay the difference between The Peugeot Passport price of the car, your deposit and the minimum guaranteed future value over the period you have chosen.
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Your monthly Payments and Guaranteed future value are fixed, allowing you to budget effectively.
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At the end of the agreement you can drive away in a brand-new Peugeot by simply renewing your Passport agreement (subject to mileage, condition and status).
What could be Simpler?
How Do I benefit from Passport
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Passport can give you worry-free motoring. All Passport agreements include Road Fund Licence for the first year and Peugeot's own Extended Warranty .
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Passport gives you flexible options at the end of the agreement. You can part exchange with any garage, enter a new agreement and drive away in a brand-new Peugeot (subject to mileage, condition and status, Purchase the vehicle for the Guaranteed Future Value ir just hand the car back (subject to mileage, condition and status).
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With Peugeot Passport Pro payments are less than traditional finance over a similar term. The final payment and the deposit are deducted from the sale price with monthly payments calculated on the remaining balance(plus interest on the whole amount financed).
What are my options at the end of the agreement?
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You can part exchange your current vehicle and arrange a New Passport Proagreement. The guaranteed future value is set from day one, at the end of the agreement your car is valued as a part-exchange and any difference between the two is you deposit for a new car (subject to mileage,condition and status).
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You can keep the car and pay off the Guaranteed Future value that was agreed at the start of the agreement.
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You can return the vehicle to your local Peugeot Dealer without any further charges (subject to the vehicle being returned on time and meeting the mileage and condition terms contained in the agreement).
Questions and answer
Q-I never own my car?
A- Who ever does? when most customers finish a finance agreement they have a small break and then start again! You are always paying for a car in one shape or form, with Peugeot Passport Pro maintenance is kept to a minimum, as all New Peugeots have a three year warranty with most cars on 20,000 mile service intervals. Remember this is not a lease, at the end of the agreement you can purchase the vehicle and take full ownership.
Q- What if I go over my mileage will I get charged?
A- You will get charged if you decide to hand the vehicle back and have exceeded the mileage that you set at the start of the agreement. You will also be charged if the car has any major damage, (fair wear and tear is acceptable).
