Business Motor Finance
The business user - both established companies and new start businesses - have a wide choice of motor vehicle finance options for their car finance. Usually, whatever type of contract is taken, be it contract hire, contract purchase, lease purchase or hire purchase, the generic industry term is car leasing. We are able to provide car leasing using all the above mentioned types of finance for both the new start business and established companies even if they have credit problems such as poor credit history, bad credit, adverse credit, CCJs or even no credit history whatsoever. Often the business user finds that his credit rating has deteriorated through his being in a line of defaulting payers, which eventually filters down to him, reducing his credit rating or leaving him unable to pay his own creditors and thus gathering a poor credit rating which will in turn make it difficult for him to find motor vehicle finance for car leasing.
Here at yourcarchoice.com we have a team of expert business car leasing personnel able to assist the business user - both established and new start companies, whether they have a good credit rating, poor credit history, adverse credit, bad credit or no credit history. The choices open to the business user are hire purchase, lease purchase, contract purchase and contract hire.
With hire purchase, even if the company has historically had credit problems including involvement in bankruptcy, adverse credit, little or no credit history or CCJs, yourcarchoice.com should be able to find motor vehicle finance to suit the company's needs. Hire purchase gives the end user the ability to budget for their vehicle costs over the time of the hire purchase agreement and at the end of the hire purchase agreement the vehicle then becomes the property of the hire purchase contract holder, usually the company. A hire purchase agreement is made with an initial deposit followed by the monthly payments - and here the hire purchase agreement can be specifically tailored to the period the company requires, although the industry norm is 36 or 48 months other periods are available. Hire purchase agreements typically include the road fund licence and registration fee (where applicable for a new vehicle) but the maintenance, insurance, fuel etc remain the responsibility of the hire purchase agreement holder.
Contract purchase is a form of car finance or car leasing which again is meant solely for the business user, including new start businesses or established companies which have good credit or adverse credit problems or a poor credit rating. Here the monthly costs of the contract purchase are calculated by using the cost of the vehicle, the projected annual mileage and the duration of the contract required, together with the value of the car at the end of the contract purchase agreement. This figure is often called the Guaranteed Future Value, or the balloon payment, and this provides the option to purchase the vehicle at the end of the contract for a known amount (the balloon figure). If the company decides that it does not wish to purchase the vehicle they can either hand the vehicle back (we arrange collection for you); to start again with a new contract purchase agreement (again, we arrange collection for you) or to simply hand the car back to the funder and "walk away". The industry norm for contract purchase agreements again is 36 or 48 months, but with the option of a specific period if required. Contract purchase agreements are also available with the option of including maintenance.
A further option for the business community is Lease Purchase. Again, lease purchase is available to both new start business and established companies regardless of whether they have poor credit, adverse credit, no credit history or CCJs. A lease purchase car finance agreement is structured in a similar manner to the vehicle finance option contract purchase, described above, and is sometimes known as hire purchase with a balloon. The monthly rentals on lease purchase agreements are determined by the cost of the vehicle, the lease purchase contract period and the estimated future value of the vehicle, which is based on the projected annual mileage and therefore the total mileage at the end of the lease purchase contract. When the end of the lease purchase agreement is reached the company then makes a payment equivalent to the estimated future value (the balloon payment) and at this point the vehicle then becomes the company's property. A lease purchase contract for car leasing is especially suited to vehicles which would be used for business, as the VAT is reclaimable if the vehicle is solely used for business. New start businesses with bad credit or a poor credit history, as well as the established business user with adverse credit is ideally suited to taking motor vehicle finance in the form of a lease purchase contract, although naturally lease purchase contracts are available to companies and new start businesses which do not have credit problems. Additionally, lease purchase gives the option of settling the motor finance at any stage of the lease purchase agreement.
Contract hire is the final option, and one of the best known forms of funding car leasing requirements. Contract hire has historically been the method of choice for the business user, both for the established company and for new start businesses and is available to companies who do not have a good credit rating, as well as those who do. If the business has adverse credit, bad credit, poor credit history or even CCJs contract hire agreements are a suitable method of financing the company's vehicle requirements. Contract hire agreements can be tailored to the company's specific requirements like the options described earlier, lease purchase, contract purchase and hire purchase. Contract hire agreements can include maintenance, and will always include the road fund licence for the first year of the contract, and usually for subsequent years also. With a contract hire agreement there are no depreciation issues for the company to deal with and no disposal problems - at the end of the contract hire period the company can take out a new contract hire on another vehicle, leaving us to arrange the delivery of the new car to co-incide with the collection of the old one. Using contract hire for your business vehicles makes good economic sense as parts of the contract are VAT-reclaimable. Contract hire agreements, as with the other types of motor vehicle funding available for the business community like lease purchase, contract purchase and hire purchase, are clear and concise. The contract hirer knows each month what his vehicle costs will be, leaving only the "consumables" such as fuel and insurance as a variable. Building in maintenance costs into the contract hire agreement will further give the assurance that maintenance costs are covered for the life of the contract hire period.
In common with other car leasing schemes, contract purchase and contract hire agreements have penalty fees payable if the car has covered more than the agreed mileage (known as "excess mileage charges") or if the vehicle is returned with more than fair wear and tear damage at the end of the contract purchase or contract hire agreement.
For established businesses or for new start companies with a good credit rating or with adverse credit, a poor credit history or companies who have historically found sourcing motor vehicle finance for their car leasing requirements our contract purchase, lease purchase, hire purchase or contract hire agreements offer the business user the ability the chance of an affordable car finance package to enable them to drive the vehicle, or vehicles, of their choice.
