Your car is a very personal choice. Now your finance plan can be to. Let Palmers Citroen Business run through how we can offer a one-stop-shop. Buying either a new or used Citroen is exciting - choosing the model and specification you want is a real pleasure based on your tastes, your needs and your circumstances. No one tells you what colour to have, or what options to choose. Its simply about what you want and what you can afford.
Financing you car should be 'No Hot Air, No Baffling Jargon', just clear information designed to allow you to make an informed decision about what type of finance suits you best - whether it be Citroen i-deal motoring solutions package, or a more traditional finance plan such as Hire Purchase (HP). Its simple, you consider what level of monthly repayment you are comfortable with, the deposit you have available, whether you plan to keep the car long-term, or exchange it after a few years. The choice is yours.
Why try anywhere else when we at Palmers Citroen Business can offer you the whole package!!
Please take a look at our financial plans below or call the Sales Hotline number 01923 211414 NOW to see what amazing packages we can offer.
Contract Hire is a great option for companies who emphasise cost control. One regular and VAT- efficient payment will cover most motoring costs and risks, including the Road Fund Licence, depreciation and the eventual disposal of the vehicle. Many clients also choose to include a maintenance package that’s designed to suit them. The only other costs remaining with the customer are fully comprehensive insurance & fuel.
Contract Hire means that clients:
- Gain an additional credit line.
- Can reclaim the VAT on 50% of their payments and on 100% of their maintenance package costs.
- Run vehicles that are not recorded in the Balance Sheet but on the Notes to the Audited Accounts.
- Can claim Hire Rental Tax Allowances.
In Summary Contract Hire offers:
- Fixed cost, inflation free motoring.
- No Residual value risk.
- Low initial outlay.
- Cash Flow benefits for business users.
- Ability to renew cars for minimal outlay.
- Allows cars to be kept up to date and vehicle fleet fresh.
PERSONAL CONTRACT HIRE
Personal Contract Hire, as its name suggests, is essentially the same, and offers the same benefits as Contract Hire, but for private individuals. If you want fixed cost motoring, or have opted out of a company car scheme then Personal Contract Hire could provide you with hassle free 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 usually available so that you don't get any nasty surprises.
Personal Contract Hire benefits are:
- Allows you to hire new or used vehicles,
- Includes a full-term Road Fund Licence
- Can include a full maintenance package that takes all the worry out of motoring.
PERSONAL CONTRACT PURCHASE
Personal Contract Purchase suits people who want to own the vehicle at the end of the contract and who value expense control. It is an excellent option for those who have opted out of a company car scheme or for non-VAT registered companies. This is a variation on lease purchase where the ‘balloon’ or deferred payment is agreed and guaranteed.
Personal Contract Purchase means:
- A low deposit.
- Payments that can be reduced by a deferred ‘balloon’ payment.
- An option to own the vehicle at the end of the contract.
- No disposal or unexpected ‘balloon’ payment risks.
- The option to refinance the balloon payment at the end of the contract.
Ideal for companies who cannot fully reclaim VAT and is particularly suitable for financing the more expensive cars on the fleet, typically those costing more than £25,000.00. The big difference between Contract Purchase and Contract Hire is that there is the opportunity to buy the vehicle at the end of the contract period. You have the option of paying a 'balloon payment' at the end of the contract which makes you the legal owner or alternatively you can return the vehicle to the funder. Contract Purchase offers all the operational, managerial and administrative benefits of Contract Hire, together with the tax-efficient benefits of ownership, such as the ability to claim capital allowances.
Under HP agreements, there's a deposit to pay (typically 10%) followed by fixed monthly payments. The car is owned by the HP company until the final payment (and any 'option to purchase' ownership-transfer fee) has been paid. Up to that point, the person making the payments has no legal right to sell the vehicle.
Nevertheless, some 'owners' do sell 'their' cars before the final payment. The good news for buyers of these 'non-paid-up' HP cars is that the law clearly protects private purchasers who buy without notice of any undischarged HP agreement. No matter what the police or anyone else might tell you, you'll get a good title to the car if you buy an HP car under these circumstances. The finance company can take action against the seller if they wish, but it's not your problem.
The credit on an HP agreement is secured against the car, so it's like dealer finance in that the only the car can be seized in the event of a default. If you need to sell the car before the end of the agreement, you'll have to repay the outstanding debt first and 'early settlement' fees may apply.
Go for HP if you say yes to one or more of these statements:
- Eventual ownership is important to you
- Your budget and circumstances suit fixed monthly repayments
- Your disposable income is likely to decrease over the agreement term (eg if you're planning a family)
- You like low-risk credit secured against the car only
- You don't mind not owning the car until the debt is fully repaid
Finance Leasing is a fixed-term funding option for companies who want to administer their own vehicles and who want to show these as an asset on their balance sheet. Companies choose from 2 options:
- To pay for the entire cost of the vehicle and the interest over the agreed lease period or
- To make lower monthly payments by electing to make a deferred – or “Balloon” Payment at the end of the agreement.
Whichever is chosen, clients never take ownership of a Finance Leased vehicle. It must be sold to a third party and a portion of the sale’s proceeds, together with any “Balloon Payment” must be paid to the finance company.
Under the terms of a Finance Lease, companies will:
- Gain a further credit line.
- Combine a low initial outlay with low monthly costs.
- Reclaim 50% of the VAT on their repayments and claim hire rental tax allowances.
- Show another asset on their balance sheet.
- Have equity in the sale proceeds of the vehicles.