Your link can go here
Your link can go here

Contract Hire and Leasing

Introduction

Prestige and Power use one of the UK 's leading suppliers of contract hire and leasing brokers. We pride on offering a solution to all your vehicle needs whether it is for a business or personal use. We have a wealth of experience and employ high calibre people to look after all you needs.

Here we explain all the different funding methods and the advantages to taking out each type of contract.

What is Car Leasing?

Leasing is a method of paying for the use of a car or van over a specified period of time. It may sound like renting, but don't get the two confused because they are very different. Where you can rent a car for as little as a day, or even a few hours, leasing typically starts at 18 months.

Prestige and Power aim to offer:

  • Consistently low pricing for both business and personal leasing, all the time.
  • We quote and supply any make and model of vehicle.
  • We quote and supply any make or model of used vehicle.
  • All methods of finance available on all vehicles-business and personal.

Vehicle Finance

11 under covers, ready for delivery by Prestige and Power.

 

What is Contract hire?

Contract hire is a perfect product for companies who do not want the financial risk of running their own car or commercial fleet. Contract Hire is an ideal way to reduce the burden of having to buy, service and dispose of a vehicle fleet

A business simply hires a vehicle for a pre-determined period at a fixed monthly rental. The finance company retains ownership of the vehicle and any risks associated with it. The vehicle is returned at the end of the contract and your company is free to start another contract.
Top of page

The key benefits of contract hire to the business user are:

Off balance sheet funding
With a contract hire agreement the vehicle does not appear on your company's balance sheet as it is not owned by you. The vehicle is owned by the finance company. Therefore it is removing the capital asset from your balance sheet and can improve your company's borrowing ratio

 

Fixed monthly cost
When you take out a contract hire agreement your company agrees to pay a fixed monthly payment for the duration of the contract. Most finance houses will ask for three monthly payments as a deposit. The advantage of a fixed cost means your company is able to budget much easier as there are no hidden costs. This can further be enhanced by taking out a maintenance contract as all your servicing costs will be included in the monthly rental

 

VAT Benefits
Contract hire has many VAT benefits. Once the vehicle is on the road, you can then claim back 100% of the VAT on the servicing element of the rental cost and 50% of the finance rental cost (if for private use)

 

Reducing your Financial Risks
Because the vehicle does not belong to your company there are no financial risks such as worrying about residual values, increase in interest rates etc.. You have peace of mind that you are in a contract and you know exactly how much you are paying every month for a set pe

 

Reducing administrative burden
Contract Hire means that an administrator will only be needed to get a quote and ensure the relevant paperwork is sorted at the beginning of the contract. If maintenance is included in the contract the driver can simply call a number to arrange any maintenance themselves. Therefore relieving the administrative burden.

A contract hire agreement is typically between 18 - 60 months.

Flexible to meet your individual needs and requirements

 

Does my business qualify?
A business user may be described as any trading concern whether a limited company, partnership or sole trader who can offset the acquisition and running costs of a vehicle (or a proportion thereof) through the business accounts.
Top of page

What is Contract Purchase?

Contract Purchase is an ideal solution for companies who cannot fully reclaim Vat. It is also an ideal method for financing the more expensive vehicle on the fleet i.e., those over £25K. It offers the same operational benefits of contract hire with the main difference being that the vehicle is on the balance sheet.

The major difference between Contract Hire and contract purchase is the fact you have an option to buy the vehicle at the end of the contract. When you take out the contract there will be a final "balloon payment" option which will be agreed at the start of the contract. At the end of the contract you have a choice to pay this figure or simply hand the vehicle back to the finance company.

If your company decides to buy the vehicle at the end of the contract your company is then responsible for the vehicle from maintenance to disposing of the vehicle when it is no longer needed. Where a vehicle is worth in excess of £25,000 a business may consider this to be a viable option.
Top of page

The key benefits of contract purchase to the business user are:

  • Low Initial Deposit
  • Fixed monthly payment
  • Writing down allowance
  • Interest charges can be offset against tax
  • No risk on residual value
  • Optional final payment
  • No restriction on make or model
  • Alternative credit line

A contract purchase agreement is typically 18 - 60 months.
Top of page

What is Personal Contract Hire?

What ever vehicle you had in mind, you will be able to finance through personal contract hire. This is a hassle free way of financing your ideal car as it is a fixed monthly payment over a set contract period where you have agreed the vehicle will cover a set amount of miles per year.
Top of page

The key benefits of personal contract hire to the private individual are:

  • Low Initial Deposit
  • Fixed monthly payment
  • No risk on residual value
  • No restriction on make or model

A personal contract hire agreement is typically 18 - 60 months.
Top of page

What is Personal Contract Purchase?

What ever vehicle you had in mind you will be able to finance through personal contract purchase (PCP). This is a hassle free way of financing your ideal car as it is a fixed monthly payment over a set contract period where you have agreed the vehicle will cover a set amount of miles per year.

The main difference between personal contract hire and personal contract purchase is that at the end of the contract there is an option to buy the vehicle. You can still decide to return the vehicle at no additional cost but you have flexibility within the contract to purchase the vehicle at the end of the contract.
Top of page

The key benefits of personal contract purchase to the private individual are:

  • Low Initial Deposit
  • Fixed monthly payment
  • No risk on residual value
  • Optional final payment

A personal contract purchase agreement is typically 18 - 60 months.
Top of page

What is Finance Lease?

Finance Lease is a VAT free method of financing a vehicle, this is usually for VAT registered businesses and companies. The monthly rental is determined by the cost of the vehicle, the period and the estimated future value of the vehicle, which is based on the proposed annual mileage. A payment equivalent to the estimated future value is payable at the end of the contract. At the end of the contract period, the vehicle is sold and the proceeds returned to the Lessee.
Top of page

What is Lease Purchase?

Lease Purchase is an ideal alternative to bank borrowing for businesses that are not VAT registered but who want eventual ownership of their vehicle. Lease Purchase is simply a funding scheme that also favours businesses that prefer minimum payments to assist with cash flow. This is because part of the capital cost is deferred until the end of the agreement and has the obvious effect of reducing the monthly payments.

In paying the balloon you complete the agreement and the car is yours to keep. If you trade the car in for another, then any allowance over and above the balloon payment is yours and can be put towards your deposit on your next car. Likewise, if the allowance is less than the balloon, then you are responsible for the shortfall.

The key benefits of Lease Purchase are:

  • Eventual ownership
  • Low initial deposit
  • The car can be written down in your books
  • All interest paid can be off-set against tax
  • No VAT on payments
  • Option to take early settlement
  • No restriction on mileage

Top of page

What is Hire Purchase?

Hire purchase was one of the original funding methods and was designed for both businesses and private individuals who wished to purchase a vehicle outright.

Hire Purchase will still be an attractive option for certain businesses who are not VAT registered and want their cars to appear as assets in their company accounts. In addition the vehicle can be written down for taxation purposes and all interest charged can be reclaimed.
Top of page

The key benefits of Hire Purchase are:

  • Simple
  • Fixed interest rates from the outset
  • Variable deposits
  • Ownership of vehicle
  • Alternative credit line
  • No restriction on type of car
  • No balloon payment
  • Option of early settlement

One of the main advantages of hire purchase is that the contract can be over 60 months.
Top of page

Outright Purchase

You may decide that leasing is not for you as you prefer to own your vehicle outright. If that's the case please contact us as we are able to sell vehicles at a very competitive price outright. Whether it be a new, used or imported vehicle we can offer vehicles for outright purchase.
Top of page

Insurance products

The most complete range of complimentary services and products to both the business and personal users i.e. car insurance, car rental, imported vehicles, gap insurance, early termination insurance.

riod of time.

 

Thank you for visiting us at Prestige and Power where we provide prestive replacement vehicles.
Prestige and Power: Making Luxury Driving an affordable option.