Niche Leasing
A popular choice for VAT registered companies that want minimum outlay and maximum control of costs, especially when maintenance and relief costs can be included.
One regular payment covers all risks including cost of depreciation and disposal for a pre-agreed period, 12 to 60 months and an agreed annual mileage of up to 40,000 miles. Road fund licence is included but a full maintenance package is optional and can be tailored to your needs.
- Additional credit line
- Vat - 50% can be reclaimed on cars & 100% reclaimed on commercials
- 100% claimable on the maintenance element of the vehicle should you choose this
- Not recorded on the Balance sheet, but recorded on the notes to the audited accounts
- Fixed motoring with maintenance optional
- No worries about disposal or depreciation
- Hire rental tax allowances apply
- Depending on the value a sufficient amount can be offset against tax & profits.
Personal Contract Hire delivers all the benefits of a company car to the private individual. Personal Contract hire gives the user a fixed monthly rental for a fixed contract term.
At the end of the contract term you hand the car back to the finance company, no need to sell the vehicle privately or worry about its re - sale value.
- Low initial outlay
- Flexible deposit
- Choice of rental period
- No final payment
- Fixed monthly rentals
- Optional maintenance contract
- No disposal problems
- Optional relief vehicle
- Road fund licence included for the full contract length
- No residual risk
A variation of lease purchase, but the “Balloon” deferred payment is guaranteed (GFV - Guaranteed Future Value) and you have the option to own at the end of the contract or return the vehicle.
- Low deposit
- Fixed monthly payments
- Option to own the vehicle
- GFV - Guaranteed Future Value payment leads to lower monthly repayments
- More vehicles at your disposal compared to Hire Purchase repayments
- No disposal problems or “balloon” payment risk
- Excellent option for individuals who have opted out of a company car
- Option to re-finance GFV payment at the end of the contract.
Excess mileage charges are the fees you will pay to the finance provider if you go over your pre-agreed mileage allowance (Shown on your quotation and finance agreement). The excess mileage charge is calculated at a pence per mile rate. Put simply, the more you go over your pre-agreed mileage, the more it will cost you in excess mileage charges.
All Business & Personal contract hire car lease contracts have an annual mileage limit. The yearly mileage, along with other factors, helps the finance provider calculate the vehicle's residual value. Along with interest rate and tax, a vehicle's residual value is a critical factor in determining your monthly rental cost. This is because your monthly rentals are largely determined by the difference between the vehicle's purchase price and the estimated final sale price. If you go over your pre-agreed annual mileage, the vehicle's value at the end of the lease contract is likely to be less than anticipated. This is because the more miles a car has on its clock, the more its value depreciates. As such, excess mileage charges are put into place to help protect the finance provider from financial loss if you return the vehicle with a greater mileage amount than pre-agreed.
The finance provider sets the excess mileage charges. This is calculated based on several factors, including:
It is also worth noting that some finance providers have tiered excess mileage. This means that you'll be charged one excess mileage rate for any miles up to a set point, then another excess mileage rate for anything beyond that. As excess mileage charges vary, it is important that you check the excess mileage charges before you sign your car finance deal. You will be advised of your excess mileage charge upfront, and this will show on your contract.
Should you have any queries regarding any of the above information shown? please do not hesitate to contact a member of the team.
Telephone: 01756 699411
Email: info@nicheautomotive.com