BASIC FACTS
If you are a higher rate tax payer (currently 40% for non limited companies) you will in effect get 40% of your payment paid back from the tax man.e.g.
New Navara 2.5 Sport Double Cab
Deposit £2500 less 40% tax benefit =£1500
Weekly Payment £54.98 less 40% tax benefit = £32.98
or, as a 20% tax payer
Deposit £2500 less 20% tax benefit =£1925
Weekly Payment £54.98 less 20% tax benefit = £43.33
Finance Lease has been THE product for most of our customers over the years and still is THE one for anyone who wants to have all the benefits normally associated with owning a vehicle whilst maximising tax efficiencies.
That’s what we mean by up to 40% less for the self employed and businesses. This is because of the fact that for income tax purposes, finance lease is classed as a hire agreement, which means that when you lease a van or a pick up from UKVC you get 100% tax relief on your payments to offset against your taxable profits.
AND THERES MORE!
When you lease a vehicle through UKVC we get a significantly higher discount from the manufacturers than we get if you use any other form of finance or if you want to pay cash.
So How Does It Work?
You simply have to agree a monthly payment and contract period which can include an acceptable final balloon payment which will have the effect of keeping your payments to a minimum. UK Vehicle Contracts will then supply the vehicle of your choice through one of our nominated manufacturers dealerships dependent on where you are situated. Payments are made monthly by Direct Debit throughout the contract term. Finance Lease is extremely flexible and you can terminate the agreement at any time. (Early settlement charges can apply but these are dictated by the government)
THE BENEFITS
- 100% of payment allowable against taxable income
- You choose your deposit (min £200)
- VAT recoverable on monthly payments
- Non-VAT registered customers welcome
- Fixed monthly payments
- Accurate monthly budgeting
- Minimum capital expenditure
- Fixed interest rate
- On-going advice/support
- No vehicle disposal problems
- Option to keep the vehicle
Finance Lease also gives you lots of options at the end the of contract.
Option 1
The most common option chosen by our customers is to part exchange the vehicle, and take delivery of a new one as you retain 98% of the part exchange value. This allows you to use any surplus monies as your deposit on the new vehicle
Option 2
You can sell the vehicle to a third party, and use the sale proceeds as a deposit against your new vehicle or to make the final balloon payment if appropriate, or simply just keep the sale proceeds.
Option 3
Alternatively you can keep the vehicle for as long as you want as long as you pay an annual minimal sum called a peppercorn rental to the leasing company. Even this payment is 100% allowable against taxable profit.
SUMMARY
UKVC has the ability to supply any make of van or pick up AND can accommodate any form of funding including Contract Hire Lease Purchase HP, Contract Purchase and of course cash purchase. However Finance Lease invariably is the product our customers go for over and over again!