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Make, e.g. Vauxhall


Model, e.g. Corsa


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Finance Options Explained


Contract Hire
This is where a vehicle is contracted to a business (usually vat registered), for a fixed period of time and mileage at a fixed monthly rental. The price is equated by the agreement length, mileage and the value of the vehicle once the contract has completed. Maintenance packages are sometimes included within the package, however, suitability will depend on your mileage and general usage of the vehicle.
This is normally three years but of late better deals can often be had over 12 or 24 months on some new models.


Hire Purchase
The traditional way to purchase a vehicle. Payments are made over a fixed period, usually preceded by a deposit, the car then becomes the property of the person who takes out the hire agreement, once all the payments are made.


Finance Lease
Popular with companies especially on vans and commercials where 100% can be offset against tax.
The monthly figure is plus VAT which is reclaimed by VAT regsitered commercial vehicles, and 50% on true cars. Large discounts, and flexiblity make this a very popular choice. Low or high deposits. Entire cost offset against tax. With or without a terminal rental (balloon at end).



Contract Purchase
Popular with large expensive prestige cars, 4x4, sports cars, or even large fleets, and companies that are not VAT registered. The asset is on the balance sheet. and can be written down / depreciated..
Flexible deposit from £100 up to many thousand. Payments include VAT in most cases. Fixed controlable costs. Elimination of residual or resale vale risk since you can hand back the vehicle at the end. Writing down allowances against taxable profits. Easy administration,  legislated and major fleet discounts.