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What type of lease will work for me?
Customers are often unsure about the different lease options available
to them and which is the right one for their individual needs.
Go Leasing tailors each package to suit the client's personal
requirements, which we establish during the consultation phase,
but to help you here are some guidelines:
Contract Hire:
Involves one regular rental payment for an agreed period of time
and mileage figure. Costs of depreciation and disposal are built
into the package and Road Fund Licence is also included. This
is a popular option for VAT-registered companies that want to
control their costs and keep payments down. Additional options
of roadside rescue, maintenance and courtesy vehicles can be included
and charged to the rental payment.
Contract Purchase:
Companies effectively buy the vehicle through fixed monthly instalments
and have the option to retain ownership, or return the vehicle,
at the end of the contract. Ideal for businesses with high value
cars as it provides the option to buy, without the risks of depreciation,
and shows up the asset on the balance sheet.
Lease Purchase:
Businesses take ownership of the vehicle when all payments, including
the purchase option, have been made. The agreement can include
a 'balloon' payment at the end for the anticipated market value
when the lease period expires. Popular with non-VAT registered
companies that prefer to own the vehicle at the end of the contract.
Personal Leasing:
Private individuals can also enjoy the benefits of leasing a vehicle
for a manageable, fixed monthly charge; and gain tax advantages
in the process. In addition, this option gives customers the freedom
to choose a new or used car every two or three years. An all-inclusive
maintenance and breakdown option is also available to cover day-to-day
motoring issues.
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.
Finance Leasing:
Gives companies the choice to pay the entire cost (with an interest
charge) over the lease period or a lower monthly rental figure
with final payment option, based on the anticipated resale value.
Useful for VAT registered businesses that prefer to administrate
their own vehicles and show the asset on their balance sheet. |
