Vehicle Finance FAQs

Below are some of the questions which are commonly asked about vehicle finance:

Q. What, exactly, is leasing?
A. Leasing is subtracting the future trade value of your vehicle from today's selling price.
     Payments are based on the difference.

Q. Can I buy my leased vehicle?
A. Yes, the price of buying your vehicle is agreed at the start of the contract.

Q. Do I have to be a limited company to qualify for leasing?
A. No, in most cases all types of business are eligible for leasing including sole traders.

Q. Can I lease a second-hand vehicle?
A. Yes, most lenders will offer the facility to lease 2nd hand vehicles.

Q. What's the difference between H.P. and leasing?
A. With hire purchase all of the VAT iis paid in the 1st instalment. Leasing spreads the cost
     of VAT over the course of the agreement. Income tax is also slightly different, with HP
     it is worked out on a reducing balance of 25% a year whereas with leasing 100%
     of the payments can be offset against tax.
     At the end of the agreement there are slight differences. With hire purchase you can
     usually buy the vehicle for a small amount but with leasing you can continue to lease
     or, usually, you will be able purchase through a third party

For more information on vehicle finance visit State Securities Vehicle Finance