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Questions about
Personal Car Leasing
Personal & Contract Hire
Short & Long Term Agreements Explained
 Personal Contract Purchase (PCP):
Similar to Hire Purchase - with the added advantage of a
guaranteed future value on the vehicle (GFV) at the end of the
period. PCP is for private individuals who want the option of
eventual ownership coupled with the security and peace of mind of
the Finance Company guaranteeing the vehicles value (subject to
normal wear and tear and an agreed mileage) at the end of the
period.
- A low initial deposit is payable, followed by a fixed
monthly payment for the period of the loan. At the end of the
agreement the guaranteed future value (GFV) becomes relevant and
there are 3 end of contract options:
- The vehicle may be owned by paying the guaranteed future
value. This value is fixed at the
start of the agreement and will be as stated on the original
documentation.
- The car can be handed back to the Hippo
Finance Company and another car chosen and funded through
European Finance, subject to the vehicle meeting the conditions
in the agreement. 3. The vehicle may be part exchanged against a
new vehicle using any equity, the difference between the cars
trade in value and the guaranteed future value, as deposit.
Hire Purchase
You enter into an agreement with Hippo
Leasing Finance for over a fixed period at a fixed
instalment. Upon payment of the final instalment the vehicle
becomes yours. A balloon payment can be incorporated as can low
deposits.
The Benefits of Hire Purchase:
- An alternative funding line to bank overdrafts.
- Ownership at the end of the contract
- Low initial outlay
- Flexible contract
- Interest reclaimable against tax
- Writing down allowance
- Fixed monthly cost
- Business capital not tied up in a depreciating asset
Lease Purchase
For non-VAT – registered companies and private individuals that
want eventual ownership of the vehicle. A funding agreement where
the company or individual acquires ownership when all payments,
including the purchase payment have been made.
Part of the capital cost of the vehicle payment may be deferred
into a Balloon Payment at the end of the agreement, which equates
to the anticipated market value of the vehicle at the end of the
agreed leasing period.
The benefits of Lease Purchase:
- Fixed monthly cost
- Ownership at the end of the lease
- Flexible contract
- Balloon Payment
- Low initial outlay
- Business capital not tied up in a depreciating asset
- Finance not subject to VAT
- Interest reclaimable against tax
- Writing down allowance
Personal Contract Hire
(PCH) (Best Option)
Personal Contract Hire also known as private car leasing or
personal car leasing is a very popular car leasing option for
ex-company car drivers or for private individuals, with or without
car allowance.
If you have a car
allowance or not, personal contract hire offers a fixed price
risk free motoring, with no pre-set option to purchase.
Personal Car Leasing
is cheaper than hiring or taking a personal loan.
This is an
option where you lease the car in your name and not in the
company's that you are working for. With this option you will
have to return the vehicle at the end of the lease and lease
another if you need to.
You can claim at least 40 pence for every mile you drive from HMRC
(Her Majesty's Revenue and Customs) for the fist 10,000 miles
and 25 pence for over 10,000 miles.
That means you could deduct at least £4,000 pounds from your
annual income.
Do check with your accountant what you may or may not deduct or visit
HMRC Cars
and make your own calculations.
     
Personal Contract Purchase (PCP)
Personal Contract Purchase car leasing is a method of personal car
finance which offers a guaranteed optional purchase price for the
vehicle at the end of the contract. You may or may not buy the
car, it is really up to you.
Personal Lease Purchase (PLP)
Lease Purchase is a method of motor finance which is best suited
for the finance of prestige vehicles, like BMW's, Mercedes,
Porsche and where there is a potential and significant benefit in
taking on the responsibility of the residual value of the vehicle
and the end of the lease.
Personal Contract Options (PC)
Whether you choose the Personal Contract Hire option or Personal
Contract Purchase option, it is your choice of a contract which
may or may not include a maintenance agreement and will differ in
cost depending upon the two main criteria, the anticipated mileage
you are going to clock up on the vehicle and the length of hire.
Price Promise Car Leasing
One thing that makes us unique is that not only do we work alongside some of the worlds biggest banks and finance houses, we also source and purchase vehicles ourselves in bulk so that we can command the BIGGEST DISCOUNTS and pass them on to you to.
You don’t even need to be looking to finance the vehicle. Due to the massive discounts we receive, we can offer some amazing cash prices on vehicles as well!
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See also:
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Fuel Types:
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We can supply you with practically any car you could
think of.
email us
with your requirements.
Contracts
available for 6*, 12, 24 & 36 months.
Ask for details.
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Time4Leasing
Solutions look
at a unique approach
to delivering affinity
purchasing schemes to
companies, individuals,
clubs and associations,
built on simplicity and
flexibility.
Time4Leasing Solutions create
and support purchasing
schemes most relevant to
your employees or
membership.
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