What type of lease will work for me?
With recent changes to tax legislation it really is worth considering leasing over traditional methods of putting a car on the road.
We've found that customers are often unsure about which lease they should select. Which is the right one for their individual needs. When you order with Go-Leasing.com you are making the most of the buying power of a fleet size that exceeds 500,000 vehicles across Europe, with agreed national fleet discounts in place with all of the UK suppliers, manufacturers and dealer groups, saving you both time and money. At Go-Leasing.com we aim to offer the most competitive business rates and cheap lease rentals in the market.
Go-Leasing.com we will tailor each package to your business or personal requirements.
Remember we are here to help.
We would always suggest that you speak to your tax advisor to access your own requirements, but here is some informal infromation which will give you an insight to:
Business Contract Hire:
This is a popular option for all types of business both large and small, especially if the business is or planning to become VAT-registered. Businesses that would like to run a new or nearly vehicle and keep control of monthly cash-flow should consider Business Contract Hire. There is a low initial outlay, usually equal to 3 or 6 months rentals (the more you pay in advance the lower your monthly rental). The contract would be for a fixed period of time, typically two, three or four years with an agreed annual mileage.
Tax benefits
All payments attract VAT at the prevailing rate, 100% of which can be reclaimed if the car is used for purely business purposes, 50% if any private mileage is carried out. In the case of a commercial vehicle 100% of the VAT can be reclaimed. Up to 100% of the payment and VAT you make can be offset against taxable profits.
100% of the payments you make can be offset against taxable profits for cars with a Co2 up to 160 g/km, and 85% of your payments for cars with a Co2 of 161 g/km and above.
What is covered?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the period of the contract & full balance of the manufacturer warranty.
Peace of mind
Where a maintenance package has been selected, all scheduled servicing, tyres, & exhaust have been budgeted for. Additional options of roadside rescue, and courtesy vehicles can be included and charged to the rental payment. 100% of the VAT can be reclaimed in respect to the service rental.
What happens at the end of the contract?
You simply hand the car back to the Leasing Company for them to dispose of; they take the risk of disposal and future values.
Personal Contract Hire
Leasing in recent years has opened up to the consumer, offering savings with cheap monthly payments and the buying power of contract hire fleets that run into 1000’s of vehicles for you to choose from, any make, any model. On your behalf we have already negotiated greater discounts than you might obtain from your local dealer. Low initial payments, equal to three or six months rentals give great value motoring by comparison to expensive bank loans that go on for longer than you might like. Contracts are for a fixed period of time, typically two, three or four years with an agreed annual mileage.
Tax benefits
All payments attract VAT at the prevailing rate, and will be quoted inclusive. If you carry out any business miles in your lease car then you would be in a position to claim tax allowances for every business mile you cover.
What is covered?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the period of the contract & full balance of the manufacturer warranty.
Peace of mind
An all-inclusive maintenance and breakdown option is also available to cover day-to-day motoring issues. Where a maintenance package has been selected, all scheduled servicing, tyres, & exhaust will be budgeted for. Additional options of roadside rescue, and courtesy vehicles can be added and charged to the rental payment.
What happens at the end of the contract?
You simply hand the car back to the Leasing Company for them to dispose of; they take the risk of disposal and future values.
Flexible Finance Leasing:
Flexible Finance Lease is useful for VAT registered businesses that prefer to administrate their own vehicles and show the asset on their balance sheet.
Companies have the choice to pay the entire cost of a vehicle (with an interest charge) over the lease period, or pay a lower monthly rental with the inclusion of a deferred, balloon or residual value payment. The deferred, balloon or residual value” payment is based upon the anticipated resale value of the vehicle after the age and mileage at the end of the lease have been taken into consideration.
There is a low initial outlay, usually equal to 3 or 6 months rentals (the more you pay in advance the lower your monthly rental). The contract would be for a period of two, three or four years. Although this term is flexible and could be settled early if required. There is no mileage restriction or reconditioning costs to consider in respect of the leasing company.
Tax benefits
All payments attract VAT at the prevailing rate, 100% of which can be reclaimed if the car is used for purely business purposes, 50% if any private mileage is carried out. In the case of a commercial vehicle 100% of the payment & VAT can be reclaimed.
100% of the payments you make can be offset against taxable profits for cars with a Co2 up to 160 g/km, and 85% of your payments for cars with a Co2 of 161 g/km and above.
What is covered?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the first year of the contract & full balance of the manufacturer warranty (including roadside assistance).
What happens at the end of the contract?
The business would retain up to 100% of any profit made from the sales proceeds. The business would act as agent on behalf of the leasing company and dispose/sell the vehicle for a fair market value. Payment of any agreed balloon or residual value as a deferred payment would be due to the lender at the end of the agreement. With any residual value, the Risk or Reward would be yours. The business would bear any shortfall on the disposal value of the vehicle if the sale failed to achieve the disposal value.
Go Leasing would be happy to offer funding options to refinance at the end of the agreement.
Business Contract Purchase:
Companies effectively buy the vehicle through fixed monthly instalments with the option to retain ownership, or return the vehicle, at the end of the contract. There is a low initial outlay, usually equal to 3 or 6 months rentals (the more you pay in advance the lower your monthly rental). Ideal for the business with high value vehicles, as Business Contract Purchase offers low monthly payments and provides an option to buy, without the risks associated with vehicle depreciation.
Tax benefits
The vehicle is treated as an asset (although a depreciating one) on the company balance sheet. All rentals are exempt from VAT payments.
As the vehicle will be shown as an asset to the business, expenditure on cars with a CO2 emissions above 160 g/km will attract a 10% writing down allowance (wda) and expenditure on cars with a CO2 emissions of 160 g/km or below attracting a 20% wda.
Please note that the 20% and 10% rates are being reduced to 18% and 8% from April 2012.
What is included?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the first year of the contract & full balance of the manufacturer warranty (including roadside assist).
Peace of mind
Where a maintenance package has been selected, all scheduled servicing, tyres, & exhaust have been included. This element attracts VAT at the prevailing rate and 100% of the VAT would be reclaimed in respect to the service rental.
What happens at the end of the contract?
You simply hand the car back to the Leasing Company for them to dispose of; they take the risk of disposal and future values. If you would like to keep the vehicle you would have the option to purchase the vehicle for the Guaranteed Residual Value.
Go Leasing would be happy to offer funding options to refinance at that time.
Personal Contract Purchase
Just as with Business Contract Purchase, private individuals can also enjoy the benefits of leasing a vehicle. Rather than taking out a bank loan for the full cost of a car & paying it back over every longer periods of time. You would have the freedom to choose a new car, any make, any model every two, three or four years. Effectively you would be paying for the half of the car that you are using. Personal leasing offers the opportunity of manageable fixed monthly instalments with an option to retain ownership, or return the vehicle, at the end of the contract. There is a low initial outlay, usually equal to 3 or 6 months rentals (the more you pay in advance the lower your monthly rental). Ideal for the individual that likes to change their car on a regular basis without the risks associated with vehicle depreciation, and hassle of negotiation with motor dealerships. At the end of the contract the leasing company guarantee’s any future value forecast.
An all-inclusive maintenance and breakdown option is also available to cover day-to-day motoring issues.
What is included?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the first year of the contract & the full balance of the manufacturer warranty (including roadside assist).
Peace of mind
Where a maintenance package has been selected, all scheduled servicing, tyres, & exhaust have been budgeted for. This element attracts VAT at the prevailing rate.
What happens at the end of the contract?
You simply hand the car back to the Leasing Company for them to dispose of; they take the risk of disposal and future values. If you would like to keep the vehicle you would have the option to purchase the vehicle for the Guaranteed Residual Value.
Go Leasing would be happy to offer funding options to refinance at that time.
Lease Purchase:
Popular with non-VAT registered companies that prefer to own the vehicle at the end of the contract.
This is a traditional method of funding which is more flexible than Contract Hire, as you may settle the lease prior to the end date if required. Initial payments or deposits are more likely to be in line with 10% or 20% of the vehicles value. The agreement can include a “deferred, balloon or residual value” payment, which helps in reducing costs over the period of the contract. The ”balloon” payment is set at an agreed anticipated market value at the beginning of the contract in relation to the expiry date of lease. The business will take ownership when all payments, including any “deferred, balloon or residual value” payment, and purchase option, have been made.
Tax benefits
The vehicle is treated as an asset (although a depreciating one) on the company balance sheet. All rentals are exempt from VAT payments.
As the vehicle will be shown as an asset to the business expenditure on cars with a CO2 emissions above 160 g/km will attract a 10% writing down allowance (wda) and expenditure on cars with a CO2 emissions of 160 g/km or below attracting a 20% wda.
Please note that the 20% and 10% rates are being reduced to 18% and 8% from April 2012.
What is included?
Delivery to your chosen destination anywhere within the UK mainland, road fund licence for the first year of the contract & full balance of the manufacturer warranty (including roadside assist).
What happens at the end of the contract?
Payment of any agreed balloon or residual value as a deferred payment would be due to the lender at the end of the agreement. With any residual value, the Risk or Reward would be yours, as you would retain 100% of any profit, or bear any shortfall on the disposal value of the vehicle. Once all payments have been received you would become the legal owner of the vehicle.
Go Leasing would be happy to offer funding options to refinance at that time.
Purchase And Leaseback
For companies that currently own their vehicles but would like to release some capital and move to a VAT-friendly package. The vehicles can be purchased for an agreed price and leased back via finance lease or contract hire.