Finance Options
| Contract Hire | Finance Lease | Lease / Hire Purchase | Personal Contract Hire | Cash Purchase | |
| VAT recoverable on monthly rentals | ✓* | ✓* | |||
| Accurate monthly budgeting | ✓ | ✓ | ✓ | ✓ | |
| Improved cash flow | ✓ | ✓ | ✓ | ✓ | |
| Minimum capital expenditure | ✓ | ✓ | ✓ | ✓ | |
| Fixed interest rate | ✓ | ✓ | ✓ | N/A | |
| Capital allowances available | ✓ | ✓ | |||
| Rental allowable against taxable income | ✓ | ✓ | |||
| Ownership of vehicle † | ✓ | ✓ | |||
| VAT chargeable on rental | ✓ | ✓ | |||
| VAT recovered on purchase cost by funding company and passed on to customer in lower rental | ✓ | ✓ | |||
| No depreciation risks | ✓ | ✓ | |||
| No vehicle disposal problems | ✓ | ✓ | |||
| Reduced administration | ✓ | ✓ | ✓ | ✓ | |
| On-going advice/support | ✓ | ✓ | ✓ | ✓ | |
| Road fund licence provided | ✓ | ✓** | ✓** | ✓** | |
| Breakdown rescue cover ‡ | ✓ | ✓ | |||
| Replacement vehicle in case of breakdown ‡ | ✓ | ✓ | |||
| Fixed charge maintenance ‡ | ✓ | ✓ | |||
| VAT chargeable on services | ✓ | ✓ | ✓ | ||
| VAT recoverable on services | ✓ | ✓ | |||
| Optional GA✓/RTI insurance | ✓ | ✓ | ✓ | ✓ |
Other finance options, contract purchase, flexi-lease, daily rental and sales & leaseback »
| Contract Purchase | Flexi-Lease | Daily Rental | Sale & Leaseback | |
| VAT recoverable on monthly rentals | ✓* | ✓* | ✓* | |
| Accurate monthly budgeting | ✓ | ✓ | ✓ | ✓ |
| Improved cash flow | ✓ | ✓ | ✓ | ✓ |
| Minimum capital expenditure | ✓ | ✓ | ✓ | ✓ |
| Fixed interest rate | ✓ | ✓ | ✓ | ✓ |
| Capital allowances available | ✓ | |||
| Rental allowable against taxable income | ✓ | ✓ | ✓ | |
| Ownership of vehicle † | ✓‡ | |||
| VAT chargeable on rental | ✓ | ✓ | ✓ | |
| VAT recovered on purchase cost by funding company and passed on to customer in lower rental | ✓ | ✓ | ✓ | |
| No depreciation risks | ✓ | ✓ | ✓ | ✓ |
| No vehicle disposal problems | ✓ | ✓ | ✓ | ✓ |
| Reduced administration | ✓ | ✓ | ✓ | ✓ |
| On-going advice/support | ✓ | ✓ | ✓ | ✓ |
| Road fund licence provided | ✓ | ✓ | ✓ | ✓ |
| Breakdown rescue cover ‡ | ✓ | ✓ | ✓ | ✓ |
| Replacement vehicle in case of breakdown ‡ | ✓ | ✓ | ✓ | ✓ |
| Fixed charge maintenance ‡ | ✓ | ✓ | ✓ | ✓ |
| VAT chargeable on services | ✓ | ✓ | ||
| VAT recoverable on services | ✓ | ✓ | ||
| Optional GA✓/RTI insurance | ✓ | ✓ |
† At the end of contract with financing products.
‡ Optional
* Only 50% of the VAT relating to the fincance element is recoverable if private use. 100% if only business use. 100% of the service element VAT (on contract hire only) is recoverable if business use.
** Road fund license is provided for the first year only.