Finance & Funding Info

 Vehicle Finance & Funding throughout the UK

One fleet is a specialist in Contract Hire and Finance Leasing, as a vehicle and finance broker, we are able to offer most forms of finance and funding on New, Pre-registered and used cars and commercial vehicles. Each funding method will depend on the vehicle and customer status and packages can vary for Businesses and Personal users.

Please see the various funding options below;

Business Vehicle Finance

We offer a number of car finance options for businesses to fund their vehicles. We can make recommendations of what package would best suite and we advise that you contact a member of our team. Some of the packages available are outlined below to give you some guidance on the main features of each finance option.

Contract Hire

Contract Hire is exactly described by its title. The businesses is ‘contracted’ to ‘hire’ a vehicle over a set period of time within a set annual mileage. These types of contracts require an initial payment which can vary depending on circumstances, term and target mileage, and is followed by rental payments payable monthly over the period of the contract. At the end of the agreement, the vehicle is handed back to the contract hire company.

These contracts are good for business users in terms of administration, road fund license is included on most contracts though can vary from each lender. There is no requirement to dispose of / sell the vehicle at the end of the agreement as it is simply handed back. The main features of Contract Hire are;

• Low initial outlay
• Flexible payment pattern
• More capital for you business
• VAT on rentals reclaimable
• Off balance sheet borrowing
• Proportion of rentals allowable against tax
• Fixed cost motoring
• No time consuming disposal
• No depreciation risk
• Road fund license included (optional)

 

Leasing

Leasing can provide a flexible option to vehicle funding and is structured in a similar way to contract hire. The main difference being that a final payment applies and is based on the predicted residual value of the vehicle and the business is responsible for the disposal of the vehicle. Upon vehicle disposal, the business can keep up to 95% of the sale value as a rebate of rentals. This offers great flexibility if the mileage of a vehicle varies over a term and if less mileage is covered; the higher resale value is a benefit to the business.

This type of finance does not appear off balance sheet and will suite some businesses as opposed to contract hire. Some features of leasing are;

• Low initial outlay
• Flexible payment patterns
• Leaves capital free for your business
• Fixed budgeting
• Optional balloon / Final payment

 

Business Hire Purchase / Contract Purchase

Hire purchase is a Finance Agreement where the Sale Price of a Vehicle is financed over a set period of time. A deposit is paid at the start of the agreement and the balance is repaid over a fixed period of time of equal amounts. When the balance of an agreement has been paid, no further payments are required and the business gains full title of ownership to the vehicle, this can then be disposed of or continue in operation.

There is no VAT to be reclaimed on this type of agreement as the business is ‘purchasing’ the goods, though sometimes VAT can be fully reclaimed on commercial vehicles that qualify for VAT. Some agreements can be geared around variable as opposed to fixed interest rates. Some of the main features of Contract Purchase are;

• Eventual ownership (optional)
• Low initial outlay
• Flexible payment patterns
• More capital available for your business
• Interest charge claimable against tax
• Writing down allowance
• Option final payment
• Fixed budgeting

 

Personal Finance Options

We also offer a number of car finance options for private users that can benefit from some of the discounts enjoyed by business users. We can make recommendations of what package would best suite you regarding your mileage, budget and how often you change your vehicles. Some of the packages available are outlined below to give you some guidance on the main features of each finance option.

 

Personal Contract Hire

Personal Contract Hire is structured exactly like Contract Hire operated by businesses, the only difference is that VAT is not reclaimable on the rentals and individuals are offered more protection as a consumer under the Consumer Credit Act. As with business contract hire, you are ‘contracted’ to ‘hire’ a vehicle over a set period of time within a set annual mileage. An initial payment applies and is followed by rentals paid monthly over the period of the contract. At the end of the agreement, the vehicle is handed back to the contract hire company leaving you with no risk of the depreciation and disposal of the vehicle. The main features of Personal Contract Hire are;

• Low initial outlay
• Flexible deposit terms
• Fixed rental payments
• Choice of rental period
• No depreciation or disposal issues
• No final payments
• Road fund license included (optional)
• Maintenance included (optional)
• Relief vehicle while yours is off the road (optional)

 

Hire Purchase

Hire purchase is a Finance Agreement where the Sale Price of a Vehicle is financed over a set period of time. A deposit is paid at the start which is flexible followed by fixed monthly payments that pay the balance of the agreement over an agreed period of time. When the balance of an agreement has been paid in full, no further payments are required and you gain full title of ownership to the vehicle. This type of agreement is regulated by the Consumer Credit Act, and the main features are set out below;

• Eventual ownership
• Low initial outlay
• Flexible deposit terms
• Fixed payments
• Choice of repayment period

 

Personal Contract Purchase (PCP)

Personal Contract Purchase is a Purchase Agreement where the sale price of the vehicle is financed. An initial deposit is paid at the beginning of the agreement and the balance is repaid with fixed monthly payments over the period of the agreement. The monthly payments can reduced by deferring a large amount of the debt to the end of the agreement and is then due as a final payment or sometimes know as a balloon payment, at which point gives you some options depending on the agreement type. When the balance of the agreement has been paid, you gain full title to the vehicle. This type of agreement is regulated by the consumer credit act.

PCP Guaranteed Future Value (GFV)

Some PCP agreements have what is known as a guaranteed Future Value (GFV), which is when the bank set the final / balloon payment based on the predicted resale value of the vehicle at the end of the agreement, which the bank guarantees. These types of agreements have fixed mileage restrictions in place, and if your vehicle is within the agreed mileage at the end of the agreement when the final payment is due, you have 2 options.

1. You can just hand the vehicle back to the bank with no further payments due and no risk to your credit record.
2. You can pay the final payment and you gain full title to the vehicle.

PCP Non Grunted Future Value (No GFV)

Personal Contract Purchase packages can also have no GFV where the bank does not guarantee the future value of the vehicle and it cannot be handed back. The final payment is payable and you gain full title to the vehicle.

The main features of PCP agreements are set out below;

• Eventual ownership (optional)
• Low initial outlay
• Flexible deposit terms
• Fixed payments
• Choice of repayment period
• No final payments (optional)
• Optional final payment
• Inclusive maintenance costs (optional)
• Optional final payment structure