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Contract Hire
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A popular choice for VAT registered companies who want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included. With this VAT beneficial financing package, one regular rental payment covers all risks including costs of depreciation and disposal for an agreed period of time and mileage. Road fund licence is included, but roadside rescue, maintenance and relief vehicle provisions are options that can be added and charged to the rental payment.
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Lease Purchase
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For non-VAT registered companies, who want eventual ownership of the vehicle. A funding agreement where the company acquires ownership when all the payments, including the option to purchase have been made. Part of the capital costs of the vehicle payment may be deferred into a 'balloon' payment at the end of the agreement which equates to the anticipated value of the vehicle at the end of the agreed leasing period.
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Finance Lease
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Ideal for VAT registered companies who want to handle the administration of their vehicles, and have the asset shown on their balance sheet. A VAT beneficial option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.
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Contract Purchase
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For companies with high value cars who would like the option to purchase the vehicles, but don't want any depreciation risks. The customer acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back. Contract Purchase has the added benefits of savings on maintenance and relief vehicles, and comes with a full Dial rescue breakdown cover and road fund licence.
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Hire Purchase
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Please call for full details
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Outright Purchase
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Please call for full details
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Purchase and Leaseback
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For companies wishing to retain the use of their vehicles, yet generate capital from their sale, whilst transferring to a VAT beneficial funding method. If a company currently owns its vehicles, this option means Network will purchase the vehicles for an agreed price and lease them back using either Contract Hire or Finance Lease.
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Personal Leasing
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For private individuals who want a hassle-free and cost effective way to finance and maintain a vehicle. Consultation and assessment of your requirements may reveal it is the ideal vehicle financing solution for your business and personal needs. This allows you to enjoy significant tax advantages, a choice of new or used vehicle every two or three years for a fixed monthly charge that is easy to budget for, as well as an all-inclusive maintenance and breakdown package.
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Finance/Taxation Issues
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|
Meeting
your requirements |
Contract
Hire |
Contract
Purchase |
Hire
Purchase |
Lease
Purchase |
Finance
Lease |
Personal
Leasing |
Outright
Purchase |
|
Accurate Monthly
Budgeting |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
|
|
Improved
Cash Flow |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
|
|
Minimum
Capital Expenditure |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
|
|
Fixed
Interest Rate |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
N/A |
|
Capital Allowances
Available |
|
Ö |
Ö |
Ö |
|
N/A |
Ö |
|
Rental Allowable
Against Taxable
Income |
Ö |
|
|
|
Ö |
N/A |
|
|
Ownership
of Vehicle + |
|
Ö ± |
Ö |
Ö |
|
Ö ± |
Ö |
|
VAT chargeable
on Rentals |
Ö |
|
|
|
Ö |
|
|
|
VAT Recoverable
on Monthly Rentals |
Ö * |
|
|
|
Ö * |
|
|
|
VAT Recovered on
Purchase Cost by
Network & passed
on to customer in
lower rental |
Ö |
|
|
|
Ö |
|
|
|
No depreciation
risks |
Ö |
Ö |
|
|
|
Ö |
|
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Vehicle Running Requirements
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|
Meeting
your requirements |
Contract
Hire |
Contract
Purchase |
Hire
Purchase |
Lease
Purchase |
Finance
Lease |
Personal
Leasing |
Outright
Purchase |
|
No Vehicle
Disposal Problems |
Ö |
Ö |
|
|
|
Ö |
|
|
Reduced
Administration |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
|
|
On-going
Advice/Support |
Ö |
Ö |
Ö |
Ö |
Ö |
Ö |
|
|
Road Fund
Licence provided |
Ö |
Ö |
|
|
|
Ö ** |
|
|
Breakdown
Rescue Cover |
Ö |
Ö |
|
|
|
Ö |
|
|
Replacement
Vehicle in case of
Breakdown |
Ö + |
Ö + |
|
|
|
|
|
|
Fixed charge
maintenance |
Ö+ |
Ö + |
|
|
|
Ö + |
|
|
VAT chargeable
on services |
Ö |
Ö |
|
|
|
Ö |
Ö |
|
VAT recoverable
on services |
Ö |
Ö |
|
|
|
N/A |
Ö |
KEY
| + |
At end of contract with financing products. |
| ± |
Optional. |
| * |
Only 50% of the VAT relating to the finance element is recoverable if private use. |
| |
100% if only business use. |
| |
100% of the service element VAT is recoverable if business use. |
| ** |
Road fund licence is provided for the first year only. |
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