Leama Specialist Cars

Vehicle Finance

  • A Hiring Agreement where the vehicle remains the property of the Finance Company.
  • The vehicle is disposed of by the Finance Company at the end of the contract.
  • The contract hire period is usually set between 2 and 4 years.
  • The contract is for a set mileage usually a maximum of 100,000 petrol engines and 120,000 diesel engines.

The customer pays for a fixed monthly rental for contract hire which will always include:

  • a) Cost of vehicle funding.
  • b) Cost of vehicle depreciation.
  • c) Road Fund License.

For an additional Rental the customer can include the following options to a contract hire package:

  • a) All Maintenance, Service, Repairs, Tyres and Batteries.*
  • b) Relief Vehicle provision.
  • c) Recovery service.

* Accidental damage, driver abuse and glass breakage's are normally excluded.

Advantages

  • 1. Fixed cost motoring: The Customer only has to bear the direct costs for fuel and vehicle insurance, plus Excess Mileage charges if the vehicle exceeds the Terminal Mileage figure.
  • 2. Reduced Administration.
  • 3. No responsibility for vehicle disposal on contract hire.
  • 4. Low initial outlay.
  • 5. Low monthly outlay.
  • 6. Finance charged on VAT exclusive price of new and qualifying cars.

Disadvantages

  • 1. No equity on the vehicle at the end of the contract hire.
  • 2. VAT on rentals only 50% of which is reclaimable.
  • 3. Vehicles do not appear on the balance sheet.
  • A Funding Agreement where the title to the vehicle passes to the customer when all payments and fees have been made.
  • Agreements are often 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.
  • The customer is responsible for depreciation, maintenance costs and all risks of ownership.

Advantages

  • 1. Customer gains ownership of the vehicle.
  • 2. Vehicle appears on company balance sheet.
  • 3. Customer has equity in vehicle to pay deposit on next vehicle.
  • 4. Customer claims writing down allowance.
  • 5. No VAT on monthly payments.

Disadvantages

  • 1. Higher initial outlay.
  • 2. Higher monthly cost.
  • 3. VAT not reclaimable.
  • 4. Customer bears risk of depreciation of vehicle.
  • A Hiring Agreement where the vehicle remains the property of the Finance Company.
  • The Hirer is responsible for Residual Value (Balloon Rental).
  • The Hirer is responsible for all maintenance and Road Fund Licence.
  • Title in the Vehicle can never pass to the hirer.
  • On disposal of the vehicle, to a third party, the Finance Company will refund to the hirer a percentage of the sales proceeds after deducting the Balloon repayment.

Advantages

  • 1. Low initial outlay.
  • 2. Low monthly outlay. Hirer only pays for depreciation and finance charges during the course of lease.
  • 3. Finance charged on VAT exclusive price of new and qualifying cars.

Disadvantages

  • 1. No or reduced equity in the vehicle at the end of the contract.
  • 2. VAT on rentals only 50% of which is reclaimable.
  • 3. Vehicles appear on balance sheet as per SSAP 21.
  • 4. Hire takes risk of any loss on the sale of the vehicle.
  • 5. Pay interest on outstanding Balloon payment.
  • A Funding Agreement where title to the vehicle passes to the customer when all payments and fees have been payed.
  • Agreements are constructed with a deferred payment equating to the anticipated value of the vehicle at the end of the agreement.
  • The vehicle can be returned to the Finance Company at the end of the contact.
  • The contract is set for a period usually between 2 and 4 years.
  • The contract is for a set mileage usually a maximum mileage of 100,000 for petrol engines.

The customer pays a fixed monthly rental which will always include:

  • a) Cost of vehicle funding.
  • b) Cost of vehicle depreciation.
  • c) Road Fund License.

For an optional maintenance rental* the customer can include the any or all or the following:

  • a) All Maintenance, Service, Repairs, Tyres and Batteries.
  • b) Relief Vehicle provision.
  • c) Recovery service.

* Note: VAT is not applied to monthly payments but IS due on any maintenance rental.

Advantages

  • 1. Low initial Outlay.
  • 2. Low monthly cost.
  • 3. No risk for depreciation.
  • 4. No VAT on finance repayment.
  • 5. Option to own vehicle.
  • 6. Vehicle appears on balance sheet.
  • 7. Fixed cost motoring.

Disadvantages

  • 1. No or reduced equity on vehicle.
  • 2. VAT on new or qualifying vehicles not reclaimable.
  • 3. VAT on Maintenance element of Repayment.
  • A Hiring Agreement where the vehicle remains the property of the Finance Company.
  • The vehicle is disposed of by the Finance Company at the end of the contract.
  • The contract is set for a period usually between 2 and 4 years.
  • The contract is set for mileage usually for a maximum of 100,000 petrol engines and 120,000 diesel engines.

The customer pays a fixed monthly rental which will always include:

  • a) Cost of vehicle funding.
  • b) Cost of vehicle depreciation.
  • c) Road Fund License.

For an additional Rental the customer can include the following options:-

  • a) All Maintenance, Service, Repairs, Tyres and Batteries*.
  • b) Relief Vehicle provision.
  • c) Recovery service.

* Accidental damage, driver abuse and glass breakage's are normally excluded.

Advantages

  • 1. Fixed cost motoring:- The Customer only has to bear the direct costs for fuel and vehicle insurance, plus Excess Mileage charges if the vehicle exceeds the Terminal Mileage figure.
  • 2. Reduced Administration.
  • 3. No responsibility for vehicle disposal.
  • 4. Low initial outlay.
  • 5. Low monthly outlay.
  • 6. Finance charged on VAT exclusive price of new and qualifying cars.

Disadvantages

  • 1. No equity on the vehicle at the end of the contract.
  • 2. VAT on rentals only 50% of which is reclaimable.
  • 3. Vehicles do not appear on the balance sheet.

At Leama Specialist Cars we work closely with a number of specialist car finance providers, enabling us to identify the best solutions for each client’s unique circumstances.

The vehicle finance and acquisition methods that make up our portfolio range from traditional hire purchase (HP) and business contract hire, to personal contract purchase (PCP), personal contract hire (PCH) and finance lease.

For more information and to apply for finance, please complete the form below in as much detail as possible and a dedicated member of our team will respond promptly.


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Our Stock

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General Enquiry


Mark Platts
Director
07976 914729
Office
WA16 0SR
01565 832900
Jonathan Travis
Director
07711 840456

Registered Office Address: The Copper Room The Deva Centre, Trinity Way, Manchester, Lancashire, M3 7BG | Company Number: 04752047.

Leama Specialist Cars is a credit broker and not a lender. This means that we deal with a wide range of financial institutions to give our customers a greater choice of competitively priced options. For your protection, Leama Specialist Cars is authorised and regulated by the Financial Conduct Authority for the sale of consumer credit. Leama Specialist Cars is authorised and regulated by the FCA (Financial Conduct Authority).


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