Happy New Van offers a complete suite of finance solutions which can be designed around YOU and your own personal circumstances. With low deposits and an excellent service why not try us? After all it cost nothing to enquire!
This is the traditional method of financing a vehicle with the vehicle becoming the property of the lessee at the end of the arranged period. The monthly payment is determined by the amount of deposit paid, the period of the contract and the sale price of the vehicle.
Personal Contract Purchase (PCP)
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Becoming an extremely popular mode of financing a vehicle, it is a method of funding where an individual leases a vehicle for a set period of time at a fixed monthly instalment.
At the end of the contract there is an optional balloon payment which the individual can pay to buy the vehicle otherwise they can choose to return the vehicle to the finance company with nothing further to pay. The monthly charge is governed by the initial cost of the vehicle, the mileage covered, the period of the agreement and the estimated value of the vehicle at the end of the contract.
As the estimated future value is set at time of inception even if the residual values plummet the individual’s value is guaranteed.
This is essentially the same as Contract Hire but for the private individual. If you want fixed cost motoring, or have opted out of a company vehicle then Personal Contract Hire could provide you with hassle free fixed cost motoring without the residual value risks associated with traditional ownership.
VAT is built into the monthly payments, but is not reclaimable by private individuals. Maintenance packages are available to take care of all potential ownership costs and surprises.
Contract hire is ideal if your business prefers to hire rather than own. It is simply an agreement where a rental is paid in return for the vehicle over one, two, three or four years. It also relieves you of the time-consuming administration to selling it or worrying about its value in the future.
Furthermore, if you are a VAT registered business then a proportion of the rentals may be tax deductible. As contract hire is classified as an operating lease for current taxation purposes, it is regarded differently to 'purchase' contracts so that you may benefit from certain tax advantages.
Finance lease is a hire agreement with features specifically designed for the business user, and if you are VAT registered there may be even more financial reasons why leasing is for you.
Once you have chosen a new van you can decide on a period of between one and four years. When the agreement ends, and subject to the terms and conditions of the agreement being met, you may arrange to sell the vehicle to a third party on the finance companies behalf and may receive a rebate on the rentals.
As this is a lease, it is regarded differently to "purchase contracts" for tax purposes, enabling you to benefit from certain tax advantages. A proportion of all the rentals can be claimed as business expense against taxable profits and the proportion is dependant on the price of the car being leased.
As in such cases, you should ask your own financial or tax advisor whether this applies.
It’s that simple, please contact us to arrange a personal quotation and find out why we really are Smiles ahead of the rest….
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