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We understand
that some of our customers find the decision between Hire
Purchase or Finance Lease a
difficult one, so please find below a simple explanation
of both finance options.
HIRE PURCHASE
Hire Purchase enables the customer to obtain a new or used refrigerated vehicle
in return for regular payments over a specified period.
- The customer pays full VAT up front
and claims it back in the normal way
- VAT is not charged
on the monthly payments
- Legal Title passes to the customer
at the end of the agreement
Benefits:
- Customer retains 100% of any future sale proceeds
- Negotiable
deposit
- Customer claims his/her own Writing Down Allowance
against tax
- Leave credit lines, particularly with bankers,
unaffected
- Repayment are fixed at drawdown
- Agreement
is secured on the asset being financed - no need
for additional security
- Flexible, tailored finance to
suit you
You know exactly what you have to pay and when, allowing
you to plan ahead and retain control.
FINANCE LEASE
Finance Lease is defined as paying for use, not ownership,
of an asset. The customer takes possession and enjoys
the use of the a new or used refrigerated vehicle in return
for payment of regular rentals. At the end of the lease
period, the customer may extend the lease period by paying
a secondary rental or sell the refrigerated vehicle as
our agent and receive up to 95% of the sale proceeds.
- The customer is responsible for
Maintenance, Repair, Service and insurance
- VAT is payable
by the customer on lease rentals as they fall due
- Secondary
Lease period available — Nominal rentals beyond the
end of the agreement allow the customer to continue using
the vehicle — Further flexibility to suit the customer
Benefits:
- Reduces the need to tie-up capital
in fixed asset
- Allows use of a new or used refrigerated
vehicle with minimal capital outlay
- Leaves other credit
lines, particularly with bankers, unaffected
- Lease
period can be matched to the anticipated life of the
refrigerated vehicle
- Finance Lease payments are 100% Tax
deductible
- Legal title retained by lessor
- Simple and
quick arrangement — less time wasted, more time
for you and your customers to concentrate on business
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