Vehicle Leasing Guide

Personal Contract Hire (PCH) is a fixed term, fixed mileage rental agreement providing fixed cost motoring with no depreciation risk. There's the option to add a fixed cost maintenance package covering all servicing, maintenance, tyres & roadside assistance. Simply return the vehicle at the end of the contract.

Advantages of Personal Contract Hire

• No buying/disposal concerns as you simply return the vehicle at the end of the contract.

• Fixed term contract (2 to 5 years).

• Pre-agreed contract mileage.

• Easy budgeting.

• No depreciation risk.

• No capital expenditure.

• Free UK delivery.

• Flexible initial rental payment & flexible payment profiles.

• Option to include maintenance & servicing.

• Road fund licence included for the full term of the contract.

Points to consider

• There is no option to purchase or own the vehicle at any time.

• Early termination can be expensive, the cost is at the funder's discretion.

• An excess mileage charge will be payable in the event of the contract mileage being exceeded.

• Damage recharges may be applied if the vehicle is not returned in an acceptable condition (please ask for a copy of the BVRLA Fair Wear & Tear Guide).

• Vehicle must be serviced and maintained in accordance with the manufacturer's terms.

• Vehicle must be comprehensively insured.

• VAT is payable within the agreed rental and cannot be reclaimed.

• Parking, congestion and other fines are rechargeable and may incur additional charges.

Please Note: The information provided is for guidance only and may be subject to change – you should consult your accountant or local tax office to verify your individual circumstances.

Personal Contract Purchase (PCP) is a conditional sale agreement based on a pre-agreed contractual mileage. It's a flexible agreement with 3 options at the end of the contract:

• Simply return the vehicle at no cost (as long as the vehicle is in an acceptable condition and contract mileage has not been exceeded).

• Dispose of the vehicle to a 3rd party - any equity is yours to keep.

• Pay the Optional Final Payment and keep the vehicle.

Advantages of Personal Contract Purchase

• Option to terminate contract at any time without any interest penalty.

• Flexible contract up to 5 years to reduce monthly outlay.

• Pre-agreed contract mileage.

• Pre-determined fixed motoring costs for easy budgeting.

• Road fund licence included for first 12 months then funder arranges and recharges to you by direct debit.

• No depreciation risk.

• No buying / disposal concerns.

• Free UK delivery.

• Flexible initial payment & flexible payment profiles.

• The option to include service & maintenance contract and roadside assistance.

• Flexible options at the end of the agreement (unlike with PCH).

Points to consider

• Contract mileage should be based on anticipated total mileage.

• Excess mileage charges will apply if contract mileage has been exceeded when handed back to the funder.

• The vehicle must be comprehensively insured.

• If vehicle is not returned in an acceptable condition, damage recharges may apply (please ask for a copy of the BVRLA Fair Wear & Tear Guide)

• Vehicle must be serviced and maintained in accordance with manufacturer's terms at your expense.

• Any parking, congestion and others fines are rechargeable and may incur an additional charge.

• If you choose to terminate the contract before you have paid 50% of the Total Amount Payable there may be a balance to pay if the value of the vehicle is less than the settlement figure.

Please Note: The information provided is for guidance only and may be subject to change – you should consult your accountant or local tax office to verify your individual circumstances.

Business Contract Hire (BCH) is a fixed term, fixed mileage rental agreement providing fixed cost motoring with no depreciation risk. There's the option to add a fixed cost maintenance package covering all servicing, maintenance, tyres & roadside assistance. Simply return the vehicle at the end of the contract.

VAT is payable on the monthly rental - 50% of the VAT on the Finance element can be reclaimed for a car or 100% for a Commercial vehicle.

If a maintenance option is taken, 100% of the VAT on the Maintenance element is reclaimable.*

Rentals paid on a BCH agreement are tax allowable.

*VAT reclaim assumes standard VAT registration - any registration variance may be subject to different criteria.

Advantages of Business Contract Hire

• No buying/disposal concerns as you simply return the vehicle at the end of the contract.

• Fixed term contract (2 to 5 years).

• Pre-agreed contract mileage.

• Easy budgeting.

• No depreciation risk.

• No capital expenditure.

• Free UK delivery.

• Flexible initial rental payment & flexible payment profiles.

• Option to include maintenance & servicing.

• Road fund licence included for the full term of the contract.

Points to consider

• There is no option to purchase or own the vehicle at any time.

• Early termination can be expensive, the cost is at the funder's discretion.

• An excess mileage charge will be payable in the event of the contract mileage being exceeded.

• Damage recharges may be applied if the vehicle is not returned in an acceptable condition (please ask for a copy of the BVRLA Fair Wear & Tear Guide).

• Vehicle must be serviced and maintained in accordance with the manufacturer's terms.

• Parking, congestion and other fines are rechargeable and may incur additional charges.

Please Note: The information provided is for guidance only and may be subject to change – you should consult your accountant or local tax office to verify your individual circumstances.

Contract Purchase is a finance agreement based on a pre-agreed contractual mileage with an option to purchase. It's a flexible agreement with 3 options at the end of the contract:

• Simply return the vehicle at no cost (as long as the vehicle is in an acceptable condition and contract mileage has not been exceeded).

• Dispose of the vehicle to a 3rd party - any equity is yours to keep.

• Pay the Optional Final Payment and keep the vehicle.

Advantages of Contract Purchase

• Option to terminate contract at any time without any interest penalty.

• Flexible contract up to 5 years to reduce monthly outlay.

• Pre-agreed contract mileage.

• Pre-determined fixed motoring costs for easy budgeting.

• Road fund licence included for first 12 months then funder arranges and recharges to you by direct debit.

• No depreciation risk.

• No buying / disposal concerns.

• Free UK delivery.

• Flexible initial payment & flexible payment profiles.

• The option to include service & maintenance contract and roadside assistance.

• Flexible options at the end of the agreement.

Points to consider

• Contract mileage should be based on anticipated total mileage.

• Excess mileage charges will apply if contract mileage has been exceeded when handed back to the funder.

• The vehicle must be comprehensively insured.

• If vehicle is not returned in an acceptable condition, damage recharges may apply (please ask for a copy of the BVRLA Fair Wear & Tear Guide)

• Vehicle must be serviced and maintained in accordance with manufacturer's terms at your expense.

• Any parking, congestion and others fines are rechargeable and may incur an additional charge.

• If you choose to terminate the contract early there may be a balance to pay if the vehicle value is less than the settlement figure. There may also be an Option to Purchase Fee of £10 if this option is chosen.

Please Note: The information provided is for guidance only and may be subject to change – you should consult your accountant or local tax office to verify your individual circumstances.

Finance Lease is a flexible funding product designed for business users to spread the cost of vehicle usage over a period of up to 5 years. At the end of the contract, there are 2 options available:

• Dispose of the vehicle to a 3rd party - any equity is yours to keep, or;

• Pay the final payment (if applicable) and keep the vehicle. The lease agreement will then enter a secondary period with an annual peppercorn rental until the vehicle is disposed of.

VAT is payable on the monthly rental.

50% of the VAT on the finance element can be reclaimed for a car of 100% for a commercial vehicle.

If maintenance option is taken, 100% of the VAT on the maintenance element is reclaimable.*

Rental paid on a finance lease agreement are tax allowable.

*VAT reclaim assumes standard VAT registration - any registration variance may be subject to different criteria.

Advantages of Finance Lease

• No capital expenditure.

• Flexible contract of up to 5 years to reduce monthly outlay.

• Fixed monthly rentals allow for budgeting costs.

• Option to terminate early at any time on payment of settlement figure & disposal to a 3rd party.

• No damage recharge implications at contract termination.

• Option to include a pre-set residual value (final payment) to reduce monthly outlay.

• Option to include servicing, maintenance and roadside assistance.

• Road fund licence included for first 12 months then funder arranges and recharges you by direct debit.

• Free UK delivery.

• Flexible initial payment & flexible payment profiles.

Points to consider

• No option to purchase or own the vehicle at any time.

• Risk of vehicle depreciation lies with the customer.

• Vehicle must be serviced and maintained in accordance with manufacturer's terms at your expense (unless maintenance option is taken).

• Any parking, congestion and others fines are rechargeable and may incur an additional charge.

• If you choose to terminate the contract early there may be a balance to pay if the vehicle value is less than the settlement figure.

Please Note: The information provided is for guidance only and may be subject to change – you should consult your accountant or local tax office to verify your individual circumstances.