Leasing Guide To Buying Your Next Vehicle
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LEASING GUIDE

Contract Hire

The most popular form of financing providing fixed cost monthly rentals while avoiding the financial risk of owning vehicles. A contract hire agreement means no need to find the initial capital to purchase the car. There are many benefits to contract hire:

  • Available for business and private users

  • Flexible terms to suit your requirements with variable duration and mileage terms

  • Maintenance of vehicles can be included in monthly rentals

  • Deposit equivalent of either one months rental in advance or up to 50% of the vehicle cost

  • Monthly rentals subject to VAT (VAT recoverable for VAT registered business on LCVs only)

  • Simply hand the vehicle back at the end of the contract

Finance Lease

This type of leasing contract is well suited for businesses looking to add more than one vehicle to their business. If you don't have the capital to purchase your new business car or van outright, finance leasing is for you. this leasing process is similar to the above Contract Hire but has more freedom for your business.

The benefits of ownership with minimum deposit and maximum flexibility, more suited to non-VAT registered business users:

  • Deposit equivalent of either one months rental in advance or up to 50% of the vehicle cost

  • Flexible repayment period to suit your requirements

  • VAT is payable on every rental, then claimed back quarterly (if VAT registered)

  • Rentals are 100% allowable against taxable profits on commercial vehicles

  • You can defer a large payment to the end of the contract reducing monthly rental and aiding cash flow

  • The vehicle is either sold or part-exchanged at end of contract and you receive majority of the sale proceeds dependent onthefunder

  • No mileage restrictions apply

Finance Lease offers end contract flexibility, for those customers who might like to retain the vehicle. Finance Lease combines many of the benefits of Contract Hire and Lease Purchase. A finance lease is a VAT-efficient method of financing a vehicle that is usually accessed by VAT-registered companies.

Because it is a hire product, VAT is paid on the rentals which can help cash flow.

Once payments have been completed, the hirer can sell the vehicle to a 3rd party and retain 100% of the sales proceeds.

Benefits may include:

  • Fixed monthly rentals for ease of budgeting

  • Lump sum or a fixed number of rentals as advance payment

  • Option to extend agreement into a 'secondary' period for a nominal annual fee (peppercorn rental)

  • Option to include a deferred sum/final 'balloon' payment to keep monthly costs low

  • Same tax relief as Contract Hire

  • 50% VAT usually reclaimable on cars

  • 100% VAT usually reclaimable on LCVs

How it works:

  1. Pay an initial deposit followed by a fixed number of monthly rental payments over an agreed contract period.

  2. At the end of the term, you can choose a further 'secondary' lease of hire or dispose of the vehicle and keep 100% of the proceeds (paid as a rebate of rentals). Any balloon taken will need to be settled at the end of the primary period.

If you have any finance lease enquiries on our range of models, please contact West Way Leasing team on 01252 266 038.

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Aprite (GB) Limited is a limited liability company registered in England and Wales under number 3261643 with its registered office at The Rivers Office Park, Denham Way, Maple Cross, Rickmansworth, Hertfordshire WD3 9YS. For the purpose of insurance mediation & consumer credit activity Aprite (GB) Limited, trading as West Way Nissan, is authorised and regulated by the Financial Conduct Authority Ref No. 311404.
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