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Funding Options
Here at Calvert Vehicle Solutions we offer a number of packages to suit a variety of business and personal needs. We will happily talk you through the various options, give you a quick decision and endeavour to beat any other package that you have been offered.
We pride ourselves in giving our customers friendly, reliable and honest advice and a personal service which will make the process straightforward and easy.
- Business Contract Hire
- Business Contract Purchase
- Business Finance Lease
- Hire Purchase/Lease Purchase
- New Car Leasing
- Personal Contract Hire
- Personal Contract Purchase
- Personal/Private Car Leasing
- Sale & Leaseback
- Buy versus Lease
With Contract Hire, you can hire company vehicles for a pre-determined period at a fixed monthly rate with or without maintenance and servicing.
Contract Hire is a simple yet very effective solution and is a very popular choice with VAT registered companies who do not want the financial risks or administration and maintenance costs associated with purchasing and running their own company vehicles. It is also off balance sheet funding and up to 100% of VAT can be reclaimed on the rental provided that there is no element of personal use. If personal use of the vehicle is required then 50% of VAT can be reclaimed against your VAT liability. 100% of the VAT is recoverable on the maintenance element of the contract.
The monthly rental for Contract Hire, fixed for the lifetime of the contract covers the cost of the vehicle, depreciation and maintenance, recovery and replacement car (where included in the contract). It even covers the cost of road fund licence for the contract period too. All you have to do is insure it and put fuel in it and at the end of the agreement, provided that the contract mileage has not been exceeded and the vehicle is free from any damage, the hirer simply returns the vehicle to the finance company with no depreciation or disposal risks and minimum hassle.
Key Benefits
- The rentals are tax deductible
- Reduce administration and risk as maintenance, mechanical repairs, breakdown recovery and replacement car can be included in contract
- Off balance sheet funding
- No large capital outlay - - deposits are usually three months rental
- Better, more accurate budgeting as monthly payment covers most costs
- No disposal concerns or risks as this is the responsibility of the Contract Hire or Leasing company
- Benefit from the purchasing power of large Contract Hire and Leasing companies
- Improved Company Profile/Image - - Because of the way in which Contract Hire costs are calculated a more expensive and prestigious car may be less in monthly cost than a less expensive car
For businesses that would like the option to purchase the vehicle at the end of the contract agreement but do not want any depreciation risks. The business acquires the vehicle by paying fixed monthly payments with the asset being shown on the company balance sheet and can either retain ownership at the end of the contract or return the vehicle to the funder with no extra cost (subject to mileage and/ or condition). Service and maintenance facilities can also be included in the monthly rental.
Key Benefits
- Initial payment requirements are generally low
- Pre-determined costs and fixed terms smooth out cash flow
- Payments can include maintenance and vehicle servicing
- No purchasing or disposal hassles
- No risks of depreciation
- Accurate budgeting with minimal administration
Finance Lease works in a similar way to Contract Hire and again is a popular choice for VAT registered businesses that want to handle the administration and maintenance of their vehicles and have the asset shown on their balance sheet. You can run one vehicle or an entire fleet without any capital outlay.
A Finance Lease is a contract based upon a pre-determined period and simply finances the acquisition of a vehicle. A VAT beneficial finance option were the hirer can choose to pay the entire cost over the period of the lease period or pay lower monthly payments for the life time of the lease contract period with a final payment based on the anticipated resale value of the vehicle determined by the anticipated annual mileage. Finance Leases can be terminated early and offer greater flexibility although the hirer assumes responsibility for selling the vehicle to an independent third party at the end of the contract and provides the opportunity for you to benefit from any equity available.
Key Benefits
- The leasing company is able to reclaim, all of the VAT on the purchase price of the vehicle, which is reflected in much lower monthly payments to the customer
- Fixed monthly payments for the duration of the contract
- Initial payment requirements are generally low
- Accurate budgeting and improved cash flow
- Some element of VAT may be reclaimable on the rental
- A residual/final value can be included in the contract thereby reducing the monthly payment and assisting cash flow
This type of agreement is suitable for both business and private users who wish to acquire ownership once all the payments have been made. It is a pure funding method of spreading the vehicle purchase value over a pre-determined period. Part of the capitol cost of the vehicle may be deferred into a “balloon” payment at the end of the agreement based on the anticipated value of the vehicle resulting in lower monthly payments.
Key Benefits
- Fixed monthly payments for the duration of the contract enabling more accurate budgeting
- Initial payment requirements are generally low
- You can purchase the vehicle at the end of the agreement
- A residual value can be included in the lease thereby reducing the monthly payment
New car leasing provides both individuals and/ or businesses with a convenient method of affording a new car without the significant financial outlay of paying for the full value of your new car upfront.
Paying only for the depreciation of the car ie the money the car loses during the term of the agreement; Business Contract Hire and Personal Contract Hire (the main products of new car leasing) provide a financially viable option instead of buying your car outright.
New car leasing is suitable for business and individuals alike – giving you the opportunity in many cases to afford a vehicle that could have been over your budget if you were to purchase the new car via a bank loan rather than using Calvert Vehicle Solutions car leasing services
Personal Contract Hire is designed to provide private individuals with many of the advantages previously only available to businesses. Again, service and maintenance facilities can be included in the monthly payment.
Personal Contract Hire (PCH) gives the user a fixed equal monthly rental for a fixed contract term and mileage. At the end of the contract the vehicle is simply handed back. This form of funding is popular with company car drivers who are given a mileage allowance instead of a company vehicle. It allows the individual to make their own choice and arrangements and can often results in you obtaining a car that you probably thought was out of your budget. It also means you will avoid benefit-in-kind taxation too.
At the end of the contract, provided that the contract mileage has not been exceeded and the vehicle is free from damage, you simply return the car to the finance company with no depreciation or vehicle disposal risks and minimum hassle.
Key Benefits
- Initial payment requirements are generally low
- Pre-determined costs assist in budgeting and improved out cash flow
- Rentals can include maintenance and service packages
- No purchasing of disposal hassles or risks
- No depreciation risk
- Road Fund Licence included for length of contract
Designed for the consumer, PCP utilises the future value of a vehicle to reduce monthly payments. The value is then guaranteed based upon an agreed pre-determined annual mileage and period and allows for an option for the customer to either purchase the vehicle for this price or simply return it to the funder with no extra cost (subject to mileage and/ or condition). Service and maintenance facilities can also be included where required. At the end of the contract period, you have three options:
Hand back the vehicle to the finance company. (An excess mileage charge may be incurred if exceed the stated mileage).
Purchase the vehicle at the GFV value. (Regardless of market value.We can arrange a re-finance package if required)
Part-Exchange the vehicle. (This is by far the most popular option as it allows you the possibility of taking equity from the difference between the part-exchange price and the GFV figure on the vehicle. This amount can be used as a deposit on your next vehicle).
Key Benefits
- Initial payment requirements are generally low
- Pre-determined costs and fixed terms assist budgeting and smooth out cash flow
- Rentals can include servicing and maintenance
- No purchasing or disposal hassles
- Option to purchase vehicle at end of contract offers flexibility
- No risks of depreciation
If you are looking for a new car, car leasing could provide you with a more affordable option to buying a car.
Private or Personal Car Leasing is a term used for consumers who are taking advantage of business lease rates plus VAT.
Essentially car leasing was conceived from a business car lease requirement, however over recent years more private individuals have shown interest in leasing and hence Lenders have created private car leasing products.
Calvert Vehicle Solutions provide Personal Contract Hire (PCH) typically 24 – 36 month contract lengths which include VAT. We can also provide options for increased annual mileages and optional maintenance and service contracts.
At the end of the agreement t, the individual is expected to return the vehicle to the leasing company with no more than normal wear and tear.
For companies wishing to retain the use of their vehicles, at the same time generating capital from the sale, whilst transferring to a VAT beneficial funding method.
The companies vehicles are purchased by the leasing company at an agreed price and leased back using Contract Hire or Finance Lease thus releasing capital in the short term to invest in core business activities.
Please contact Calvert Vehicle Solutions for further information.
Key Benefits
- Sale and Leaseback allows freed up capital to be redirected back into your core business.
- Contract Hire enables you to budget more effectively for all key fleet management charges.
- Time spent on vehicle buying, selling, disposal and overall operational management will be greatly reduced.
- The burden of vehicle depreciation, which can be as much as 40% in the first 3 years, is completely removed.
- The typical expenditure required to maintain a fleet can be much less for Contract Hire when compared to outright purchase.
- Regular fixed charges makes overall budgeting much easier.
New car leasing or contract hire as it sometimes known has become increasingly popular in the UK yet many individual and businesses who could benefit from leasing their cars are still taking out loans, hire purchase agreements or using their own capital to acquire their vehicles. In the past the main reason for this reluctance to lease was usually the lack of knowledge of the benefits of leasing and the confusion caused by the terminology that surrounds it. In the following article we will explain, in easy to understand language, the car leasing process and how it may be the ideal choice for you.
Before we take a look at the main benefits that car leasing has to offer it is worth bearing in mind the famous quote of oil baron Paul Getty – “If it appreciates, buy it. If it depreciates, lease it”.
A car is not like a house which usually appreciates in value after purchase, whereas, when you drive away in a brand new car it is already losing value and in today’s tough economic climate at an even greater rate than in previous years. If you take out a car loan or hire purchase agreement to purchase a new car you are simply paying a set amount a month for something that is losing, not gaining in value.
Some of the benefits of new car leasing.
- One of the biggest attractions of car leasing is that you enjoy the buying power of the large leasing companies to enable you to drive away a car that might be out of your price range in terms of purchase price.
- No depreciation worries as this is carried by the leasing company
- No vehicle disposal concerns as you simply return the car at the end of the agreement
- Accurate monthly budgeting
- Fixed monthly payments
- Low deposits, usually amounting to 3 monthly payments
- No high maintenance costs as the car’s warranty will normally cover the period of the lease and all maintenance costs can be covered
- Annual Road tax is usually included
- Free up cash from your existing car/cars – we will buy your cars for cash
- Cash flow, Tax and VAT benefits for business users