Pride can provide a wide range of finance solutions tailored to your needs.
- Contract Hire
Contract Hire is the most popular funding method for UK fleets accounting for almost half of all company cars. The vehicle(s) is leased to you for a set period of time and an agreed annual mileage in return for a monthly payment (Rental). At the end of the period the vehicle is returned to the funder and if the vehicle has not exceeded the agreed mileage and is in a fair condition there is nothing more to pay.
Contracts can be extended or ended early if required, however, this may incur charges.
Benefits of Contract Hire
- Cash flow benefits compared to outright purchase.
- Contract Hire removes depreciating assets from the balance sheet along with the associated risk of vehicle ownership.
- Most costs are fixed throughout the length of the contract allowing for easier budgeting.
- Maintenance of vehicles can be included in the product.
- Option to extend the lease at the end of the contract
- Road fund licence is included for the duration of the contract
- Contract Purchase
Contract Purchase offers the facility to purchase vehicles over a fixed period of time for fixed monthly payments. The funder agrees a repurchase price for the vehicle at the end of the contract giving you the flexibility to sell the vehicle back should you wish.
Benefits of Contract Purchase
- Maintenance and added value services can be included
- The finance company guarantees the resale value of the vehicle at the end of the contract
- You only pay VAT on maintenance costs
- Reduced risks in administering, maintaining and particularly disposing of your fleet
- Finance Lease
Finance Lease can be a tax efficient option where you choose to pay either the entire cost of the vehicle, including interest charges, over an agreed period or opt to pay lower monthly payments and a balloon payment. You benefit though fixed costs but do take on the administration and operating risks. At the conclusion of the contract you can continue to operate the vehicle under a 'peppercorn agreement' although you will at no time take ownership of the asset.
Benefits of Finance Lease
- Flexible payment profiles
- No excess mileage or end of contract charges
- A balloon payment can be included to reduce the monthly payments
- Personal Contract Hire
Personal Contract Hire (PCH) brings all of the benefits of Contract Hire to the general public, especially those provided with a cash allowance in lieu of a company car.
- Hire Purchase
Hire Purchase (HP) is a well-established method of financing the purchase of assets. Under an HP agreement you pay an initial deposit followed by regular monthly payments. The funder (finance company) owns the asset until the final instalment is paid for the asset.
The hirer can recover the writing down costs and VAT on the assets.
Lease purchase is essentially the same as HP; the main difference is in the terms and structure of repayments. Some funders differentiate Lease Purchase from Hire Purchase by using it where the customer wishes to defer payment of a substantial part of the asset cost until the end of the agreement known as a balloon payment