Finance
In business, which will suit you best?
Every business is different and dependant upon the individual circumstances we have a range of finance plans some of which are more suitable to business use compared to those used by a private individual customer.
So it's important to choose the right option for acquiring your car or fleet. Otherwise you could find it seriously affecting your bottom line.
Contract Hire
This could be right for your business if you'd prefer to hire rather than own cars. It's simply an agreement where a rental is paid in return for the vehicle over one, two, three or four years. This means you don’t have the hassle of selling the car later on, or the worry about how much it'll be worth.
It could be better still if your business is VAT-registered, as a proportion of the rentals may be tax-deductible (putting a smile on the face of anyone in charge of business finance). There may be other tax advantages too, as contact hire is looked upon as an operating lease for current tax purposes, unlike a 'purchase' contract.
Finance Lease
Finance lease is a hire agreement which is specifically designed for businesses and it could be especially good if you're VAT-registered.
You choose a hire agreement of between one and four years. When this ends, subject to meeting the terms of course, you can sell the vehicle on to a third party on Škoda Finance's behalf and you may get a rebate on the rentals.
Being a lease, this is looked upon as different to a 'purchase contract' and could be better for you tax-wise. You can claim a proportion of all rentals as a business expense against taxable profits, the size of which depends on the price of the car you lease. Ask your financial or tax advisor to see if it applies to your business.
Lease Purchase
This is a cost-effective way for your business to own the car. The agreement can last from one to four years and lets you hold back part of the cost of the vehicle until the end. Then you could own it outright.
Lease Purchase could be an even better option if your business isn't VAT-registered.
Contact Us
Call: 0845 164 9644 Or Email: fleet@dmkeith.com
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