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Anglo Asset Finance arrange vehicle funding, including contract hire, lease and pcp. Our funding solutions include pcp finance, personal contract purchase, leasing, and hire purchase.
Contract Hire
A popular funding method to acquire the use of a vehicle over an agreed period, usually between 12 and 48 months. Typically the deposit is equal to 3 monthly payments in advance followed by equal monthly payments which attract VAT. On commercial vehicles this is fully recovered by VAT registered businesses but only part recoverable on car deals. Title to the vehicle always remains with the finance company and the vehicle is returned to them at the end of the contract. Contracts are mileage based and are available with or without maintenance.
Contract Hire is also available to the private individual. In this instance the monthly figure includes VAT.
PCP finance (Personal Contract Purchase)
This scheme provides a car for a predetermined period, normally between 12 and 48 months. There is usually a deposit which is equal to 3 monthly payments followed by fixed monthly payments for the agreed period, with a lump sum payable at the end of the contract. This type of contract is based on the total mileage the vehicle will cover over the period of the agreement.
There are four options open to you at the end of the contract.
- Pay the lump sum (balloon) and keep the car
- Refinance the lump sum and keep the car
- Part exchange the car
- Hand the car back to the finance company
Hire Purchase
The simplest and best understood form of asset finance. Hire Purchase gives the business or private individual ownership of the asset at the end of the contract. Deposits range from 0% to 10% of the purchase price with fixed payments over an agreed term.
There are also balanced payment and balloon payment schemes available.
Leasing
Leasing provides the use of business assets without ownership. It may provide a tax efficient method of acquiring the use of these assets such as plant, all types of equipment and motor vehicles. Lease periods typically range from 12 – 60 months. Contracts can include balloon payments to reduce the monthly repayments which attract VAT.
Although similar to Contract Hire in the way it is structured, the major difference is that Leasing is on balance sheet funding and disposal of the asset at the end of the contract is the responsibility of the lessee.
Next move
If you would like further information regarding vehicle funding, please contact us for friendly and impartial advice.
 Freephone 0800 389 0688
info@angloasset.com
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