Leasing Options

GET THE BEST DEAL…..FILL IN OUR SIMPLE ONLINE DEAL FINDER NOW!!

The most Competitive car and van prices available! …..Any make, model, term and mileage…..great prices ….fantastic service….satisfaction guaranteed!

Competitive Car Leasing is partner to some of the leading fleet funding companies in the UK. Through working as a brokerage, Competitive Car Leasing overcomes the disparity between one lease company`s prices and another ….we will always choose the best deal available for our customers requirements.

Contract Hire Explained

Contract Hire is a vehicle finance method that benefits VAT registered and non VAT registered customers and individuals alike. If you are looking for minimum capital outlay and maximum control of costs then this is a most viable option. The vehicle is hired for an agreed period of time (usually between 12 and 48 months) and a fixed monthly rental is paid based on the mileage.

With this financing package, each monthly rental payment covers all costs of depreciation and disposal. Road Fund Licence is usually included in Contract Hire and roadside rescue, relief vehicle and full maintenance to cover tyres, exhausts, batteries and routine servicing can be added to the monthly rental.

VAT registered customers can reclaim up to 100% of VAT on the rental provided that there is no element of personal use. If personal use of the vehicle is required then 50% of VAT can be reclaimed against your VAT liability.

100% of the VAT is recoverable on any maintenance agreement. Businesses tend to prefer maintenance agreements because they make for easier budgeting, reduced administration and less hassle.

At the end of the contract, provided that the contracted mileage has not been exceeded and the vehicle is undamaged, the hirer simply returns the vehicle to the finance company with no depreciation or vehicle disposal risks and minimum hassle.

Benefits summary:

Low initial outlay required (typically 3 months rental in advance)
Improved cash flow
Fixed cost enables more accurate budgeting
Rentals are allowable against taxable profits
Off balance sheet borrowing/accounting
Capital not tied up in a depreciating asset
Some element of VAT may be reclaimable on rental
Fixed costs
Road Fund Licence included for full length of the contract
Optional maintenance and breakdown cover

Disadvantages:

Contract Hire is a fixed contract over an agreed period of time. Therefore, a penalty will occur if the contract is terminated earlier than stipulated.

Personal Contract Hire Explained

Personal Contract Hire is a vehicle finance method that is beneficial to private individuals who are looking for minimum capital outlay and maximum control of costs.

The vehicle is hired for an agreed period of time (usually between 12 and 48 months) and a fixed monthly rental is paid based on the mileage. With this financing package, each monthly rental payment covers all costs of depreciation and disposal.

Road Fund Licence is usually included in Personal Contract Hire and roadside rescue, relief vehicle and full maintenance to cover tyres, exhausts, batteries and routine servicing can be added to the ‘no hassle’ monthly rental.

This makes for easier budgeting, reduced administration and less hassle. It also means that you can obtain a car that you probably thought was out of your budget!

At the end of the contract, provided that the contracted mileage has not been exceeded and the vehicle is undamaged, the hirer simply returns the vehicle to the finance company with no depreciation or vehicle disposal risks and minimum hassle. A new vehicle can be supplied by us in the meantime making for a smooth transition from one vehicle to another.

Benefits summary:

Low initial outlay required (typically 3 months rental in advance)
Improved cash flow
Fixed cost enables more accurate budgeting
Capital not tied up in a depreciating asset
Fixed costs
Road Fund Licence included for full length of the contract
Optional maintenance and breakdown cover

Disadvantages:

Contract Hire is a fixed contract over an agreed period of time.  Therefore, a penalty will occur if the contract is terminated earlier than stipulated.

Finance Lease Explained

Similar to Contract Hire, Finance Leasing is ideal for VAT registered companies who want to handle the administration of their vehicle and have the asset showing on their balance sheet. You can run one vehicle or a whole fleet without any capital outlay. The hirer assumes responsibility for selling the vehicle to an independent third party at the end of the contract. This then settles a pre-agreed residual payment.

Potentially, the hirer can profit on this sale if the sale amount exceeds the residual payment. You will pay fixed monthly payments for the agreed lease period. You can either pay the entire cost of the vehicle over the period or pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle.

Benefits summary:

Capital not tied up in depreciating asset
Fixed monthly costs
Accurate budgeting and improved cash flow
Some element of VAT may be reclaimable on rental
Low initial capital outlay required (typically 3 months rental in advance)
Allowable against profits
The finance company can reclaim all VAT on the vehicle purchase price therefore giving you lower monthly rentals

Lease Purchase Explained

This is a finance method that is suitable for both business and private users who wish to acquire ownership once all payments have been made. It is, in essence, Hire Purchase with a leasing payment pattern.

You will agree a contract term (usually 24-36 months), annual mileage, monthly rental and an option to purchase price (or deferred ‘balloon’ payment). The ‘balloon’ payment, which is based on the estimated future value of the vehicle, effectively helps to reduce the monthly payment. The balloon payment, which at the end of the contract gives you ownership of the vehicle, must be met by either the sale proceeds of the vehicle or a lump sum payment.

Benefits summary

Low initial outlay required (typically 3 months rental in advance)
Improved cash flow
Fixed cost enables more accurate budgeting
Option to purchase at the end of the contract

Disadvantages summary

Limited tax benefits
Hirer has depreciation risks

Contract Purchase Explained

This method of funding is ideal for private individuals who want a cost effective and hassle free way to finance and maintain their vehicle. It is suitable for customers who would like the option to purchase the vehicle without taking all the depreciation risk. This method is also popular with individuals who are taking cash options in order to opt out of company car schemes or are given a ‘car allowance’.

Similar to Contract Hire, the customer decides on the deposit that they wish to pay and the length of the contract. A future value of the vehicle is then agreed, subject to mileage and good condition. The monthly payment is then calculated accordingly. At the end of the contract, which is usually over two or three years,  the customer can pay the predetermined final “balloon” payment to purchase the vehicle outright or simply return it to the finance company (in good condition) and choose a new vehicle.

With this method, the finance company allows you to enjoy significant tax advantages whilst you benefit from a brand new car that you may have thought was out of your budget. With maintenance and breakdown options also available, you have peace of mind with the knowledge that all your motoring expenses can be combined into one, affordable, monthly payment.

Benefits summary:

Low initial capital outlay
Low fixed monthly payments
Improved cash flow
Fixed cost enables more accurate budgeting
Capital not tied up in a depreciating asset
Some element of VAT may be reclaimable on hire
Road Fund Licence included
Optional maintenance and breakdown cover
Optional final payment to own the vehicle at the end of the contract
New vehicle every two or three years

Personal Contract Purchase Explained

This method of funding is ideal for private individuals who want a cost effective and hassle free way to finance and maintain their vehicle. It is suitable for customers who would like the option to purchase the vehicle without taking all the depreciation risk. This method is also popular with individuals who are taking cash options in order to opt out of company car schemes or are given a ‘car allowance’.

Similar to Contract Hire, the customer decides on the deposit that they wish to pay and the length of the contract. A future value of the vehicle is then agreed, subject to mileage and good condition. The monthly payment is then calculated accordingly. At the end of the contract, which is usually over two or three years,  the customer can pay the predetermined final “balloon” payment to purchase the vehicle outright or simply return it to the finance company (in good condition) and choose a new vehicle.

With this method, the finance company allows you to enjoy significant tax advantages whilst you benefit from a brand new car that you may have thought was out of your budget. With maintenance and breakdown options also available, you have peace of mind with the knowledge that all your motoring expenses can be combined into one, affordable, monthly payment. Benefits summary:

Advantages

New vehicle every two or three years
Low initial deposit
Road Fund Licence included for the first year
Low fixed monthly payments
Maintenance and Breakdown contracts available
Optional final payment to own the vehicle at the end of the contract.

Sale and Leasback Explained

Sale and Lease back is a popular option for companies who already own their vehicle and wish to generate capital by transferring it to a VAT beneficial funding method. In this instance companies will retain the use of their vehicle. The finance and leasing company will then purchase the vehicle at an agreed price and lease it back to the business using either Contract Hire or Finance Lease (please see above for explanation of these finance methods) tailored to the businesses requirements. This, therefore, releases capital in the short term to invest in core business activities.

GET THE BEST DEAL…..FILL IN OUR SIMPLE ONLINE DEAL FINDER NOW!!

Our friendly staff will be delighted to help you. Contact us now on 0844 880 2472….. you won`t be disappointed!

All information contained in this website is current at the time of publication and whilst the greatest care has been taken over its compilation, Competitive Car Leasing cannot be held responsible for any errors or omissions. All photographic images are for demonstration purposes and may not depict the relevant model.

Competitive Car Leasing is a Licenced Credit Broker : Licence Number 616673

Data Protection Registration Number: Z1633181