Hillendale Vehicle Contracts - Financing Options

Personnal Contract Purchase explained

Personal Contract Purchase (PCP) is available to every one subject to status. PCP provides a new or used vehicle for a pre-determined period, normally 24 - 48 months, with a low initial payment, usually equivalent to 3 monthly payments, followed by fixed payments for an agreed period with an agreed mileage.

At the end of the contract period there is a guaranteed future value that you have the option of paying to take ownership of the vehicle, or you can hand back the car without penalty.

Personnal Contract Hire explained

Personal Contract Hire (PCH) has been specifically designed for people opting out of a company car scheme or joining a new company that provides a company car allowance instead of a company car.

A PCH contract includes road fund license and, if required, service and maintenance. Rental periods typically vary between 24 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 3 months rental. VAT is payable on rentals.

At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made.

Contract Purchase explained

Contract Purchase (CP) has the benefits of Contract Hire’s fixed monthly rentals but with the option to own the vehicle at the end of the lease by payment of a “balloon” rental. Unlike Contract Hire the VAT is not reclaimable.

This finance may be preferable if you want to own your asset, yet avoid the risk of unforeseen depreciation. A guaranteed residual value helps improve your cash flow during the agreement while making the asset cost effective to buy.

Finance Lease explained

Finance Lease (FL) has the flexibility to match monthly payments to your cash flow. At the end of this commercial leasing agreement, the relevant assets are sold and you receive the major share of the proceeds.

As the asset owner, the finance company claims the available writing-down allowances and reflects this in your monthly payments.

Sales and Leaseback explained

If your company already has vehicles that have been purchased in the past, we can arrange to buy the vehicles off you to give a capital injection to the business. The vehicles would then be leased back to you at competitive rates.

Bespoke Vehicle Sourcing explained

Are you looking for an unusual or difficult to find vehicle? Do you not have the time to negotiate with dealers? Or do you just not enjoy buying a car? If the answer to any of these questions is yes, let us help.

With our vast experience and numerous industry contacts we can take the hassle out of the process. For an agreed upfront fee we will locate your vehicle and negotiate with the dealer on your behalf. We can even help you to dispose of your existing vehicle. Contact our Sales team for more details.

Contract Hire explained

Contract hire is a vehicle leasing contract for sole traders, partnerships, limited companies and PLC’s looking to run their vehicles in a way that cuts down on expense, time and paperwork by paying a single fixed rental each month.

This includes road fund license and, if required, service and maintenance. Rental periods typically vary between 18 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 3 months rental. VAT is payable on rentals but is partially reclaimable by VAT registered companies.

At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made. Ownership remains with the finance company at all times.