There are several different ways that you can finance a vehicle through your business, but we know it can be difficult to understand.
Here, we have put together a quick guide to explain the "ins and outs" of Contract Hire and Finance Lease.
If you have any further questions, please don’t hesitate to contact us.
CONTRACT HIRE EXPLAINED...
The Ford branded contract hire product for cars and Commercial Vehicles.
|Is it for you?
||This is designed for customers that are small and medium in size who are generally VAT registered and are looking for no residual risk and off balance sheet funding.
||Ford Contract Hire offers both fully and non-maintained contract hire. The agreement may be tailored in contract profile and added services to fully meet individual customer needs.
- All contracts include Road Fund Licence for the contract period
- All contracts include Breakdown Cover for the contract period and replacement vehicle for up to 48 hours in the event of a break down attended by the AA
- Maintenance Plans include unlimited tyres, batteries, exhausts and puncture repairs
- Single contact number for all drivers
- Ford Lease Accident Management service available
- VAT is charged on the rentals and 50% is unrecoverable if the vehicle is used for any private mileage (cars only)
- All VAT on the maintenance element is fully recoverable
FINANCE LEASE EXPLAINED...
The Ford branded Finance Lease product for Commercial Vehicles.
| Is it for you?
||This is designed for customers that are small and medium in size who are generally VAT registered and are looking for a flexible, VAT efficient funding solution.
||Ford Lease offers a Finance Lease with or without a balloon option. Finance Lease can be tailored in contract profile to fully meet individual customer needs.
- There are 2 types of Ford Finance Lease - "Finance Lease" and "Finance Lease with a balloon"
- At the end of the Lease, the vehicle is sold by the user on behalf of Ford Lease to a registered business entity. The user keeps 100% of the sale price net of any outstanding charges and costs
- Contracts can be settled at any point during the main term of the agreement
- Maintenance is not available
We hope this guide has helped to answer some of your questions about financing your business vehicle.
If you have any questions, we'd be very happy to hear from you...