Nissan Finance

Hire Purchase is the classical way to finance your vehicle. It involves paying off the cost of the vehicle with interest on a monthly basis. Despite being a great way to personally finance your vehicle, Hire Purchase is also a popular finance choice for businesses.

1. You let us know how much deposit you would like to pay.
   
   
2. From this we calculate, including interest, the monthly payments for the duration of the contract.
   
   
3. At the end of the agreement, after all payments have been made (including the Option to Purchase Fee), ownership of the vehicle is transferred to you.

The interest rate charged on the finance will remain unaffected by any future changes in interest rates.

The initial payment is flexible.

Fixed monthly payments are not subject to VAT. 

Taxation benefit from writing down allowance.

No mileage restrictions.

Contract Hire is the most common form of vehicle leasing and offers many benefits to businesses. It allows a company to take on cars or vans for a set period of time and pay a fixed monthly rental. The company taking out the Contract Hire agreement does not own the vehicle, reducing the financial risk to the business and easing the administrative process of buying, servicing and disposing of vehicles.

1. You pay the advanced rental ranging from 3 to 12 months upfront.
   
   
2. Fixed monthly rental for the duration of your contract.
   
   
3. At the end of your agreement, you simply return the vehicle back to us.*
   
   *Subject to any excess mileage charges and damages which exceeds fair wear and tear.

Road Fund licence included.

Optional servicing, maintenance and tyre options brings all running costs into one package.

Reduced VAT paid by business, as monthly vehicle payments can be offset against taxable profits.

Vehicles on Contract Hire are classified as ‘off balance sheet’ and therefore has accounting benefits by improving the financial ratios for the business.

VAT registered businesses are able to claim 100% of the VAT back if the vehicle is used exclusively for business.

If vehicle used privately, 50% of the VAT can be reclaimed on the finance of the rental.

Finance Lease is a hire product which gives businesses the flexible option of retaining the vehicle (for a small annual fee) at the end of the agreement. However, the customer may also sell the vehicle to a third party once all the rental payments have been made. The customer retains 100% of the sales proceeds (paid as a rebate of rentals).

1. You pay an advance rental followed by a fixed number of monthly rentals over an agreed contract period.
   
   
2. To help bring down your monthly rentals, and improve cash flow, you can choose to take an optional balloon payment. The payment of the balloon is made at the end of the primary contract period. We will need an expected annual mileage to help us with this calculation. VAT is paid on the monthly rentals whereas with a purchase finance option the customer would be required to pay the whole VAT up front.
   
   
3. At the end of the term there are two options. Even though you do not own the car, you can sell it on our behalf. You keep 100% of the sale proceeds, which you can then use as the advance rental for your next new vehicle.  You may be able to offset this advance rental against your taxable profits*.  Alternatively, once all the rentals and any balloon payment are paid, you can continue your contract with us by entering a secondary period of rental.  You will pay a “peppercorn rental” of just £50 a year plus VAT. So, if your vehicle is still working hard for you, maybe with bespoke decals or fittings, you have the option to keep using it or replace it – the choice is yours!

Fixed monthly rentals for ease of budgeting

Lump sum or number of rentals as an advance rental

Option to extend agreement into a ‘secondary’ contract period for a nominal annual fee of £50 plus VAT (peppercorn rental)

Option to include a deferred final ‘balloon’ payment to keep monthly costs low

Tax relief benefits the same as Contract Hire*

50% VAT usually reclaimable of cars*

100% VAT usually reclaimable on LCV’s*

Reduced VAT paid by business, as monthly vehicle rentals can be offset against taxable profits*

* We always recommend you take independent financial advice to determine how your own business can benefit from the advantages offered by financing your company vehicles.