If you decide to lease a vehicle, there are many options for deciding how to fund it. Whether you want to lease for business or personal use, Solent Vehicle Leasing has just the right option for you. There are many factors to take into account to help you determine the right kind of lease and we will help you through the funding process every step of the way.

Solent Vehicle Leasing offers the following funding options:

• Business Contract Hire (without Ownership)

• Business Contract Purchase (Ownership)

• Personal Contract Hire (non Ownership)

• Personal Contract Purchase (Ownership)

• Hire Purchase/Lease Purchase (Ownership)

• Finance Lease (without Ownership)

Our staff is fully trained in ensuring the customer always ends up with the package that is right for them. They will talk you through the benefits of each type of funding method and they will help you select the funding deal that matches both your requirements and your budget.

Business Contract Hire (without Ownership)

Business Contract Hire is the perfect way to finance a vehicle for your business with the small initial payment and the convenience of fixed monthly budgeting. Business Contract Hire is highly tax efficient, and the costs can be offset against your company’s taxable profits. If your business is VAT registered you are also able to reclaim the full amount of VAT associated with your monthly lease rental costs! It is also possible to reclaim 50% of the costs associated with your hire vehicle if you use the car or van for pleasure, so either way you end up being able to reclaim VAT.

• Fixed, easy to manage monthly payments

• Small initial payment (typically three monthly payments in advance)

• Delivery and collection of the vehicle arranged for you

• Disposal of the vehicle is not your responsibility

• The vehicle is not classed as a business asset

• 50% of the VAT on the contract can be reclaimed if your business is VAT registered

• No risk of depreciation

• Residual Value risk is carried by the finance company, not by you

• Hire vehicles can be exchanged for new vehicles regularly

Business Contract Purchase (Ownership):

Business Contract Purchase is the best choice for those who want to pay the minimum of capital, end up with full vehicle ownership and have manageable, fixed monthly repayments with a fixed annual interest rate.

The customer is offered the opportunity to purchase their chosen vehicle at the end of their contract by paying a sum to the vehicle financing company. With the Business Contract Purchase, the sum payable at the end of the contract is determined at the start of the contract so there are no surprises. This amount is referred to as the Guaranteed Future Minimum Value.

Business Contract Purchases are a shrewd financial move. Businesses who lease prestige cars often find that the cars would be worth more to the company if they were resold at the end of a contract period, rather than being handed back for a replacement vehicle.

Advantages

• Fixed, easy to manage monthly payments

• Low initial payment (typically three monthly payments in advance)

• The option of buying, selling or trading in once the contract has expired

• Perfect for non VAT registered businesses

• Interest charges can be claimed against tax

• Cost of rental can be claimed against tax

• If vehicle is returned the responsibility of disposal is eliminated

• No depreciation risk

• Residual Value risk is carried by the finance company and not you

Personal Contract Hire (non-Ownership)

If you’re a private motorist, Personal Contract Hire is the best option. You have complete freedom while choosing the vehicle you want, which leaves you open to all sorts of possibilities!

Personal Contract Hire gives you huge flexibility with your lease vehicle, and enables you to drive a brand new car without having to pay any additional taxes or charges and without having to pay a large initial amount.

Advantages

• Fixed, easy to manage monthly payments

• Small initial payment (typically three monthly payments in advance)

• Delivery and collection of the vehicle arranged for you

• Disposal of the vehicle is not your responsibility

• No risk of depreciation

• Residual Value risk is carried by the finance company, not by you

• Cars can be exchanged for new ones at the end of the contract

Personal Contract Purchase (Ownership)

The Personal Contract Purchase vehicle financing option is a wonderful one for private motorists wanting the best deals and the most flexibility when choosing a new car. The Personal Contract Purchase allows you to exchange your vehicle for a new one regularly without having to pay additional taxes.

You won’t have to put down a large deposit and without the risk of depreciation, there are no nasty surprises at the end of your contract! The Personal Contract Purchase also allows you to return your vehicle at any point until your contract is over, offering you the ultimate flexibility and choice.

Advantages

• Fixed, easy to manage monthly payments

• The option of buying, selling or trading in once the contract has expired

• Low initial payment (typically three monthly payments in advance)

• No risk of depreciation

• Residual Value risk is carried by the finance company, not by you

• The choice of changing cars on a regular basis

• Suitable for those wishing to opt out of a company car scheme

Hire Purchase/Lease Purchase (Ownership)

In a Hire Purchase/Lease Purchase the customer makes a lump sum payment when the lease contract is terminated. Hire Purchase/Lease Purchase agreements are very similar to Hire Purchase agreements, except for the balloon payment added at the end of the lease contract.

With this arrangement you also have the added benefit of no additional mileage penalties. The Hire Purchase/Lease Purchase arrangement is particularly suitable for non VAT registered companies.

Advantages

• Contract charges are exempt from VAT

• No mileage penalties

• Interest charges can be offset against your taxable profits

• The vehicle will appear on your balance sheet

• Releases capital which can be used in other areas of business

• Complete ownership of the vehicle

Finance Lease (without Ownership)

A Finance Lease arrangement offers a minimum initial payment, fixed monthly payments and even fixed monthly interest charges. During a Finance Lease agreement, the vehicle remains the property of the car lease finance company throughout the agreement. This gives you several tax advantages and the lease can be tailored to suit your individual needs so that a large proportion of the initial outlay is deferred until the end of the contract.

The Finance Lease agreement is perfect for those in charge of VAT registered businesses. Almost all the VAT can be reclaimed in full if the vehicle is just used for business purposes. If the vehicle is used for personal use too, 50% of the VAT can still be reclaimed.

Once the lease period has expired, the client must sell the vehicle in order to clear up any unbalanced finances. Should the amount raised be insufficient to pay off this outstanding balance, then the appropriate amount must be paid up by the lessee. This gives you huge flexibility when it comes to payments on the vehicle, and is a hugely attractive option for many businesses.

Advantages

• Vehicle Finance can be tailored to meet your specific cash flow requirements

• Contract can be taken out either by an individual or a business

• No mileage penalties

• Low initial outlay (around three rentals in advance)

• Rentals can be claimed against tax

• VAT can be reclaimed on the finance agreement provided you are VAT registered

• Vehicle can be shown as a balance sheet asset