Car Connection Agency
Car Slideshow
 

Finance

To apply online, please help us to help you by filling in as much detail as you can on our vehicle finance form, alternatively you can call us on 01253 766612.

Your Questions...

"Who owns the vehicle?"

Outright Purchase:
  The Customer
Lease Purchase or Hire Purchase (HP):
  The finance company until the final payment is made.
Finance Lease:
  The finance company until the final payment is made.
Contact Hire:
  The Supplier
Contract Purchase:
  The Supplier until the final purchase payment is made.

"Who carries the Residual Value risk?"

Outright Purchase:
  The Customer
Lease Purchase or Hire Purchase (HP):
  The Customer
Finance Lease:
  The Customer
Contact Hire:
  The Supplier
Contract Purchase:
  The Supplier

"Who carries the ongoing Maintenance Risk?"

Outright Purchase:
  The Customer
Lease Purchase or Hire Purchase (HP):
  The Customer
Finance Lease:
  The Customer
Contact Hire:
  The Supplier assuming a maintenance contract is taken.
Contract Purchase:
  The Supplier assuming a maintenance contract is taken.

"Is the vehicle on or off the balance sheet?"

Outright Purchase:
  On balance sheet
Lease Purchase or Hire Purchase (HP):
  On balance sheet
Finance Lease:
  On balance sheet
Contact Hire:
  Off balance sheet
Contract Purchase:
  On balance sheet

"Typically, how much cash is required up front?"

Outright Purchase:
  100% of vehicle purchase price.
Lease Purchase or Hire Purchase (HP):
  Typically 20% of purchase price.
Finance Lease:
  Typically 20% of purchase price.
Contact Hire:
  Typically 6-7% of the purchase price (ie 3 months advance rental).
Contract Purchase:
  Typically 6-7% of the purchase price (ie 3 months advance rental).

"Who arranges delivery and collection of the vehicle?"

Outright Purchase:
  The Customer.
Lease Purchase or Hire Purchase (HP):
  The Customer.
Finance Lease:
  The Customer.
Contact Hire:
  The Supplier.
Contract Purchase:
  The Supplier.

"Does the customer own the vehicle at the end of the contact?"

Outright Purchase:
  Yes
Lease Purchase or Hire Purchase (HP):
  Yes
Finance Lease:
  No
Contact Hire:
  No
Contract Purchase:
  Yes if they pay the final lump sum purchase payment.

"Can the monthly payments be offset in full against tax?"

Outright Purchase:
  There are no monthly payments. Capital Allowances can be offset against tax but are limited to 25% or the vehicle price of £3000 per annum whichever is the greater.
Lease Purchase or Hire Purchase (HP):
  The finance element can be offset. Capital allowances are available as per "outright purchase".
Finance Lease:
  All of the monthly rentals may be offset against tax For vehicles costing over £12,000 a proportion is disallowed.
Contact Hire:
  All of the monthly rentals may be offset against tax. For vehicles costing over £12,000 a proportion is disallowed. In addition 100% of maintenance payments may be fully offset.
Contract Purchase:
  The finance element is allowable with no rental restriction for cars over £12,000. Capital Allowances are also available.

"Assuming some private use, what % of input VAT can be reclaimed?"

Outright Purchase:
  None.
Lease Purchase or Hire Purchase (HP):
  None.
Finance Lease:
  50% of the VAT on rental payments
Contact Hire:
  50% of the VAT on rental payments
Contract Purchase:
  None.
 

CAR CONNECTION AGENCY
5 Metropolitan Business Park
Preston New Road
Blackpool
Lancashire
FY3 9LT
 
 

CONTACT NUMBERS
Tel: 08707 554 601
Fax: 08707 554 602
 
 
EMAIL US
 
 
MORE CARS FOR SALE AT:
Visit www.automartonline.co.uk
 
 
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