Personal car leasing - funding options
yourcarchoice.com offer three options for personal vehicle finance whether you have little or no credit history, adverse or bad credit, non status, County Court Judgments or defaults.
Personal Contract Purchase (PCP)
For vehicles where the balance being financed less the deposit in excess of £25,000, Personal Contract Purchase has been developed to enable individuals to finance a vehicle whilst still retaining some of the benefits associated with a company car. A lease for a new or used vehicle is offered for a pre-determined period. This period is normally 24 to 48 months, although longer periods can be arranged. This type of contract also has a pre-set mileage. At the end of the contract period the driver may purchase the vehicle by paying the guaranteed Minimum Future Value (sometimes called a balloon payment) or simply return it to the contract provider. It should be noted that if you exceed the pre-set mileage agreed, a pre determined excess mileage charge will be levied.
As this type of contract is written in the individual's name, it currently attracts no 'benefit in kind' taxation.
- This facility can also be offered to those employees not normally entitled to a company car.
- Any make or model of vehicle, new or used
- No benefit in kind liability
A contract for a new or used vehicle is offered for a pre determined period, normally 24 to 48 months, although longer contract periods can be offered. This type of contract also has a pre-set mileage and should this mileage be exceeded by the end of the contract a pre determined charge is levied.
Where applicable the VAT is claimed back on the purchase of the car by the leasing company and non reclaimable VAT is charged on the monthly rental. There is no 'guaranteed future value' and at the end of the contract, the car would normally be returned and excess mileage charges made to you if appropriate as per the contract. You are able to purchase the car at the end of the contract if you wish and a price will be quoted at that time.
Lease Purchase, this method of motor finance is best suited for the finance of prestige vehicles, where there is potentially a significant benefit in taking on the responsibility of the residual value.
