Funding Methods

Vehicle Supply and Funding Options
The Jargon Explained

Background
With over 20 years’ experience in the fleet and business marketplace, we are well placed to offer quality impartial advice on the most suitable methods of vehicle funding for any individual or business.  We have access to a wide range of products offered by mainstream lenders and arrange competitive finance packages for our customers.

Why Contract Hire?
Contract Hire is a tax efficient funding method where you hire rather than own the vehicle, paying fixed monthly charges for the duration of the contract.  It delivers ‘off balance sheet’ accounting and reclaimable VAT and can help increase cash flow to assist in the smooth running of an organisation. Under a Contract Hire agreement we retain ownership of the vehicle at all times and therefore continue to absorb all of the subsequent risks such as unforeseen running costs and uncertain resale values.

Why Finance Lease?
Finance Lease is a tax efficient option where you can choose to fund the entire cost of the vehicle plus interest over a set period or pay lower monthly rentals and then a final payment based on the anticipated retail value of the vehicle.  The vehicle is shown on the balance sheet and the VAT is reclaimable.  The monthly rental is determined by the cost of the vehicle, the period of the contract and the proposed annual mileage. You do benefit through fixed cost motoring with optional maintenance packages but also take on the administration and operating of the vehicle. 

Why Hire Purchase?
This is a traditional form of vehicle funding where a reasonable percentage of the vehicle purchase price is paid as an initial payment followed by regular monthly payments from between 12 to 60 months in duration. 

Why PCP?
This is a cost efficient form of funding suitable to the private individual where a percentage of the equity of the vehicle is left to the final payment allowing the individual to either purchase the vehicle outright or trade it back in benefiting them with some funds towards the deposit of their next vehicle.  The overall effect of this is to reduce their monthly payments to an affordable level.

Company Car Opt Out Scheme
As we carry a comprehensive bank of funding options, anyone deciding to opt out of a company car scheme will be adequately catered for with a different array of financial packages and the fleet market discounts available from APVS.

Fleet terms
Due to the volume of vehicles that we deal with we are able to benefit from negotiated terms with major vehicle manufacturers across the motor trade.  This enables us to pass on these discounts to our customers via daily rental and contract or lease payment plans which are tailor-made to suit each customer.

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