Vehicle Finance Info

Businesses have many finance options to choose from, including Contract hire, Contract Purchase, Finance Lease, Lease Purchase and Hire Purchase. If you are a sole trader, partnership, limited company or plc, vehicle finance can be used by your business to fund new and used cars, commercial vehicles, buses and coaches.

Contract hire involves the leasing of a vehicle, by a business, for a fixed period of time at a fixed rental, generally monthly. Rentals are calculated by taking the vehicle depreciation, length of contract, estimated mileage covered and can even include maintenance.

Contract Purchase is designed for those businesses that are not registered for VAT or who may elect to purchase the car at the end of the contract period.

Finance Lease is much like Contract Hire, except that the business hirer is responsible for the residual value at the end of the contract when the vehicle is to be sold.

Lease Purchase does not attract VAT and there is a balloon payment that is payable by the business hirer at the end of the contract.

For further information on vehicle finance visit: www.statesecurities.plc.uk