Autoplanfleet - Products

Contract Hire

A popular choice for VAT registered companies as it provides certain benefits

• You choose the vehicle based on your budget
• Select the most suitable hire period (usually between 24 and 60 months) and agree the annual mileage
• The vehicle remains the property of the lessor (the leasing company providing the vehicle) at the end of the agreement simply hand your vehicle back
• If VAT registered your business could claim up to 50% of the VAT on monthly rentals and 100% VAT on the maintenance rental
• You pass the risk of buying and disposing of the vehicle to the leasing company

What are the benefits?

• Small initial outlay
• Releases your capital and reduces your borrowing
• Improves the cash flow of your business
• Fixed monthly costs with optional maintenance, so no surprises
• Off your balance sheet (as the vehicle appears on the lessor's balance sheet)
• Fixed interest rates
• Reduced financial risk
• Easy administration
• No hassle as the vehicle is returned to the lessor to sell at the end of the contract

Personal Contract Hire

You choose the car you want and hand it back to the at the end of the contract

• You choose the vehicle
• Select the most suitable hire period (usually between 24 and 60 months) and agree the annual mileage
• You pay a deposit and fixed monthly amount for the duration of contract
• The vehicle remains the property of the lessor (the leasing company providing the vehicle) at the end of the agreement simply hand your vehicle back
• You pass the risk of buying and disposing of the vehicle to the leasing company

What are the benefits?

• Small initial outlay
• Fixed monthly costs making budget planning easier
• Maintenance of vehicles can be included in your rentals to spread the cost
• No hassle in selling the vehicle at the end of the contract as the leasing company does this for you
• Costs are transparent

Contract Purchase

• You decide the deposit and payment suitable for your budget
• Choose the car you like
• Choose the most suitable repayment period
• Agree your annual mileage
• You are given a Guaranteed Minimum Future Value which becomes your optional final payment
• At the end of the contract you have two options keep the car and pay the final payment or hand it back and have nothing further to pay

What are the benefits?

• Having a final payment reduces initial outlay and keeps the monthly payments lower, helping the cash flow of your business
• Fixed monthly payments makes budgeting easier
• The interest you pay is tax deductible
• Because the car is an asset on your balance sheet, you can write down a proportion of its value against your business profits
• Flexibility at the end of the agreement
• Suitable for companies unable to recover full VAT
• Easy administration
• Optional maintenance contract so no surprise bills

Finance Lease

How does it work?

• You choose to pay either the entire cost of the vehicle, including interest charges, over an agreed period or opt to pay lower monthly rentals with a final payment based on the anticipated resale value
• Effectively the risk and rewards of ownership are yours and accordingly, the asset and associated leasing debt is shown on your balance sheet

What are the benefits?

• Fixed monthly cost
• Risk and reward at the end of the contract
• Assets on balance sheet
• VAT efficient (50% of the VAT may be reclaimed on the rental as with Contract Hire)
• Easy administration
• Optional maintenance contract so no surprise bills
• Elements of the rentals paid can be offset against taxable profits

Personal Contract Purchase

How does it work?

• A conditional sales agreement whereby the user has the option to purchase the vehicle or hand the car back at the end of the contract period and have nothing further to pay
• Monthly instalments excludes the residual value which is usually paid as a final payment (known as a 'balloon' payment)

What are the benefits?

• Having a final payment reduces initial outlay and keeps the monthly payments lower
• Fixed monthly payments makes budgeting easier
• Flexibility at the end of the agreement
• Optional maintenance contract so no surprise bills
• Easy administration
• Costs are transparent