Call 029 2022 6406
email info@bayvehicles.co.uk
email info@bayvehicles.co.uk
Your Finance Options
Personal Contract Purchase (PCP)
PCP offers the best in flexibility at the end of the agreement, together with low, fixed monthly payments.
This is a Funding Agreement where you can own the vehicle when all payments and fees have been paid.
At the beginning of the agreement your car's guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final 'balloon' payment.
The vehicle can be returned to the Finance Company at the end of the contact and you don’t have to commit to buying the car at the outset.
The contract is set for an agreed period of time usually between 24 -48 months and you can choose what you would like to do at the end of this agreement.
The fixed monthly rental will also include the cost of vehicle funding and a Road Fund license. Maintenance and Recovery packages can also be included at an optional additional charge.
Advantages:
Low initial outlay and low monthly cost
No risk of depreciation as the car can be handed back to the company with nothing more to pay
You can choose to buy the vehicle at the end of the contract and keep any equity
No VAT on your finance payments
Disadvantages:
Little or no equity in your vehicle
VAT on new or qualifying vehicles not reclaimable
VAT on any maintenance element of your repayment
PCP offers the best in flexibility at the end of the agreement, together with low, fixed monthly payments.
This is a Funding Agreement where you can own the vehicle when all payments and fees have been paid.
At the beginning of the agreement your car's guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final 'balloon' payment.
The vehicle can be returned to the Finance Company at the end of the contact and you don’t have to commit to buying the car at the outset.
The contract is set for an agreed period of time usually between 24 -48 months and you can choose what you would like to do at the end of this agreement.
The fixed monthly rental will also include the cost of vehicle funding and a Road Fund license. Maintenance and Recovery packages can also be included at an optional additional charge.
Advantages:
Low initial outlay and low monthly cost
No risk of depreciation as the car can be handed back to the company with nothing more to pay
You can choose to buy the vehicle at the end of the contract and keep any equity
No VAT on your finance payments
Disadvantages:
Little or no equity in your vehicle
VAT on new or qualifying vehicles not reclaimable
VAT on any maintenance element of your repayment
Contract Hire
Contract hire is a popular choice for VAT registered businesses as this is a VAT beneficial finance package.
The vehicle remains the property of the Finance Company and you just hand back the car at the end of the term.
The contract is set for an agreed period of time usually between 24 -48 months and is for a set mileage, agreed at the outset.
The fixed monthly rental will also include the cost of vehicle funding and a Road Fund license. Maintenance and Recovery packages can also be included at an optional additional charge.
Advantages:
Low initial outlay and low monthly cost
Fixed monthly rental – direct costs only for fuel and vehicle insurance (plus excess mileage charges if the set mileage is exceeded)
The contract hire company will dispose of the vehicle at the end of the agreement
Finance is charged on VAT exclusive price of new and qualifying cars
Disadvantages:
No equity in the vehicle at the end of the contract
Only 50% of VAT reclaimable on rentals
Vehicles do not appear on company balance sheet
Contract hire is a popular choice for VAT registered businesses as this is a VAT beneficial finance package.
The vehicle remains the property of the Finance Company and you just hand back the car at the end of the term.
The contract is set for an agreed period of time usually between 24 -48 months and is for a set mileage, agreed at the outset.
The fixed monthly rental will also include the cost of vehicle funding and a Road Fund license. Maintenance and Recovery packages can also be included at an optional additional charge.
Advantages:
Low initial outlay and low monthly cost
Fixed monthly rental – direct costs only for fuel and vehicle insurance (plus excess mileage charges if the set mileage is exceeded)
The contract hire company will dispose of the vehicle at the end of the agreement
Finance is charged on VAT exclusive price of new and qualifying cars
Disadvantages:
No equity in the vehicle at the end of the contract
Only 50% of VAT reclaimable on rentals
Vehicles do not appear on company balance sheet
Personal Contract Hire
Personal Contract Hire is popular with company car drivers who are given a car or mileage allowance rather than a company vehicle.
You pay a fixed monthly rental for an agreed term, usually 24 - 48 months, although longer periods can be offered. This is also subject to a pre-set mileage.
The vehicle is then handed back at the end of the term or you may be able to purchase the car at a price decided at the end of the contract.
Advantages:
Low initial outlay and low monthly cost
No risk of depreciation as the car can be handed back to the company with nothing more to pay
Disadvantages:
No equity in the vehicle at the end of the contract
VAT on new or qualifying vehicles not reclaimable
VAT on any maintenance element of your repayment
Personal Contract Hire is popular with company car drivers who are given a car or mileage allowance rather than a company vehicle.
You pay a fixed monthly rental for an agreed term, usually 24 - 48 months, although longer periods can be offered. This is also subject to a pre-set mileage.
The vehicle is then handed back at the end of the term or you may be able to purchase the car at a price decided at the end of the contract.
Advantages:
Low initial outlay and low monthly cost
No risk of depreciation as the car can be handed back to the company with nothing more to pay
Disadvantages:
No equity in the vehicle at the end of the contract
VAT on new or qualifying vehicles not reclaimable
VAT on any maintenance element of your repayment
Hire Purchase
Hire purchase is a fixed cost agreement which is ideal for non-VAT registered business or individuals that would like ownership of the vehicle at the end of the contract
You choose the amount of deposit you wish to pay, typically between 10-50% of the vehicles cost. The remainder of the balance, together with fixed interest, is repaid over an agreed period of your choosing (12-60 months).
You are responsible for depreciation, maintenance costs and all risks of ownership.
Lease Purchase – A similar contract to hire purchase but these agreements are constructed with a deferred payment (Balloon) equating to the anticipated value of the vehicle at the end of the agreement and this allows both low initial and monthly payments.
Advantages:
You gain ownership of the vehicle,
Fixed monthly payments and you decide the deposit and term
Any equity at the end of the contract term is yours
You can claim writing down allowance
No VAT on monthly payments
Vehicle appears on company balance sheets
Disadvantages:
Higher initial outlay and higher monthly cost
Vat not reclaimable
You bear the risk of any depreciation in the car
Hire purchase is a fixed cost agreement which is ideal for non-VAT registered business or individuals that would like ownership of the vehicle at the end of the contract
You choose the amount of deposit you wish to pay, typically between 10-50% of the vehicles cost. The remainder of the balance, together with fixed interest, is repaid over an agreed period of your choosing (12-60 months).
You are responsible for depreciation, maintenance costs and all risks of ownership.
Lease Purchase – A similar contract to hire purchase but these agreements are constructed with a deferred payment (Balloon) equating to the anticipated value of the vehicle at the end of the agreement and this allows both low initial and monthly payments.
Advantages:
You gain ownership of the vehicle,
Fixed monthly payments and you decide the deposit and term
Any equity at the end of the contract term is yours
You can claim writing down allowance
No VAT on monthly payments
Vehicle appears on company balance sheets
Disadvantages:
Higher initial outlay and higher monthly cost
Vat not reclaimable
You bear the risk of any depreciation in the car
Finance Lease
Finance Lease is a hiring agreement where the vehicle remains the property of the Finance Company. This agreement is popular with VAT registered businesses. You can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly payments during the term with a balloon payment based on the anticipated resale value of the vehicle.
Advantages:
Low initial outlay and low monthly outlay. You pay only for the depreciation and finance charges during the term
Finance is charged on VAT exclusive price of new and qualifying cars
Disadvantages:
Little or no equity in the vehicle at the end of the contract
Only 50% of VAT reclaimable on rentals
Vehicles appear on company balance sheet
You are responsible for any depreciation on the sale of the vehicle.
You pay interest on the outstanding balloon payment
Finance Lease is a hiring agreement where the vehicle remains the property of the Finance Company. This agreement is popular with VAT registered businesses. You can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly payments during the term with a balloon payment based on the anticipated resale value of the vehicle.
Advantages:
Low initial outlay and low monthly outlay. You pay only for the depreciation and finance charges during the term
Finance is charged on VAT exclusive price of new and qualifying cars
Disadvantages:
Little or no equity in the vehicle at the end of the contract
Only 50% of VAT reclaimable on rentals
Vehicles appear on company balance sheet
You are responsible for any depreciation on the sale of the vehicle.
You pay interest on the outstanding balloon payment
Gap Insurance
Gap Insurance will protect you if your car is written off or stolen and not recovered. This covers any shortfall between the amount you receive as a payout and the amount you owe to the finance company.
Gap Insurance will protect you if your car is written off or stolen and not recovered. This covers any shortfall between the amount you receive as a payout and the amount you owe to the finance company.