Vauxhall & Chevrolet Business Funding

We handle the Fleet requirements of all size fleets from the single user to the largest PLC.

Our Fleet team are dedicated to Company Car Buyers. Even if you are unsure about which models best suit your needs, or which funding option will benefit your Business, we can help.

New Vauxhall and Chevrolet Cars
Light, medium and heavy Vauxhall vans and conversions
Nearly new
Single point of contact
Our own PDI Technicians
Rapid response times
Choice of Service Centres

VEHICLE FUNDING FOR THE BUSINESS USER

The need to fund a vehicle cost in the most efficient way will have a significant effect on the overall costs of operating that vehicle. Factors that could effect funding decisions are cash flow, tax liability, budget, vehicle choice, administration, year end, disposability, VAT registration.

Methods of funding available to the business user, generally categorised into the following:

HIRE PURCHASE

This is a simple but highly flexible option, which allows you to spread payments over a specific term. The interest rate is fixed at the beginning of the agreement so you enjoy the protection against interest rate rises and subsequently the benefits of easier budgeting. At the end of the term you will own the vehicle.

Benefits:

You can fund your vehicle as an asset on your balance sheet
Your initial outlay is reduced allowing your funds to be retained in the business and better cash flow
The interest charged is offset against profits reducing tax liability
The monthly payments are fixed, making budgeting easier
You can claim writing down allowances

How it works:

Choose your car

Choose your term

Pay your agreed deposit

After agreed term and completion of payments you will own the vehicle

OPERATING LEASE (Contract Hire) or FINANCE LEASE, where the user is “hiring” a vehicle for a specified time and has no right to obtain legal title to the vehicle during this period. There is no asset depreciation, monthly rentals are offset against tax liability and VAT directly through the business’s quarterly return.

CONTRACT HIRE (Operating Lease)

This is one of the fastest growing methods of acquiring vehicles for business use because it offers so many benefits. The user pays initial advance rental then low fixed monthly rentals calculated on length of contract and agreed contract mileage (with a charge imposed for mileage exceeding that agreed). The vehicle does not appear on balance sheet as an asset, all rentals paid are detailed in profit and loss account. There are no administration costs, no disposal worries and maintenance costs with relief cover can be tailored to the agreement, the largest unknown cost in running any vehicle. At maturity simply return the vehicle to it’s supplier.

Benefits:

Your monthly rentals are fixed, making budgeting easier
You can reclaim 50% of the VAT on the rentals (100% on commercial vehicles) where the car is used for private and business purposes
The rentals are also allowable against tax reducing your tax liability
You will not be responsible for the disposal of your car so you will not be exposed to the risk of depreciation.

Contract Hire can be tailored to suit your own requirements such as:

Maintenance and Servicing
Relief vehicles in case of theft, accidents or mechanical breakdown
Road Tax
Replacement Tyres

How it works:

Choose your car

Choose your term and mileage

Pay your agreed number of monthly rentals

After agreed term simply hand back your car subject to agreed mileage and condition terms with no more to pay

PERSONAL CONTRACT LEASE

This is probably the most flexible way to buy a car, enabling you to budget for several different possibilities. There are a number of combinations to choose from, depending on access to capital, cashflow and so on.

You will enjoy reduced monthly payments, as we will offer you a guaranteed future value for your car at the end of the term based on an agreed mileage, and this value will be deferred to one final payment.

Benefits:

Your monthly payments will be reduced due to the guaranteed future value, offering obvious cash flow advantages
Your initial outlay is reduced allowing funds to be retained within the business
The interest is allowable against tax
You can claim writing down allowances
You can fund the car as an asset on your balance sheet

How it works:

Choose your car

Choose your term and mileage

Pay your deposit

After agreed term simply hand back your car subject to agreed mileage with no more to pay
Or
Pay the guaranteed future value and own the car
Or
Use any credit in the value as a deposit for a new agreement

FINANCE OR BUSINESS LEASE

This provides you with full use of a vehicle but without the burden of ownership recorded on business’s balance sheet, effectively, you are only renting the vehicle. It can have significant Tax and VAT benefits as well as help you improve your cash flow and reduce capital expenditure.

The user pays initial advance rental then fixed monthly rentals calculated on pre VAT price of vehicle plus interest charges over an agreed term. No mileage limitations, no depreciation worries. At maturity the user has the option to retain the use of vehicle in return for a Secondary Agreement term on payment of annual “Peppercorn” rentals, or alternatively sells the vehicle on behalf of the Lease Company for a fair market value plus VAT to a third party not directly connected to the user’s business, which can be rolled over to next lease on another new vehicle. In the event of the user being refunded any excess sale proceeds, these are treated as profit and therefore taxable.

Benefits:

Lower monthly rentals as the finance company will claim the VAT on the vehicle, thus improving your cash flow
You can claim 50% of the VAT on the monthly rentals (100% on commercial vehicles)
A proportion of the rentals are allowable against tax reducing your liability
Low initial outlay allowing funds to be retained in the business

How it works:

Choose your car

Choose your term

Pay your agreed initial rentals

After agreed term you either sell the vehicle to a third party along with any agreed final payment, or alternatively retain the use of the vehicle in return for a Secondary Agreement.

LEASING AND VAT

All lease agreements are a service and thus attract VAT at the Standard Rate. For VAT registered users input tax paid ON ALL rentals can be reclaimed directly through the business’s quarterly return, for non VAT registered users the input tax is an allowable expense and can be offset against taxable profit.