Car Leasing from Churchgate Motor House Ltd in Leicestershire

Hire Purchase
Hire Purchase is similar to a car loan as you would pay for the whole amount of the vehicle over a fixed period of time. For example, if the car costs £10,000 you would simply agree a period of time over which to pay the £10,000 back, interest is added at the outset and then the total amount is divided equally over the repayment period. When you have finished making the payments the vehicle is owned outright by you. A deposit is usually required which would reduce the amount you borrow.

The key features of Hire Purchase are: Eventual ownership of vehicle Fixed interest rates from the outset Flexible deposit amounts The car can be written down in your books-for businesses All interest paid can be off-set against tax-for businesses No balloon payment No mileage restrictions Option of early settlement Repayment periods of 12 to 60 months No VAT on payments.

Lease Purchase
Lease Purchase is identical to Hire Purchase with the exception that instead of paying back the whole amount borrowed over a fixed period, you would defer some of the capital in the form of a balloon payment due at the end of the agreement. The logic behind this is that as the vehicle will be worth something at the end of the agreement there is no need to pay all the capital as you can sell the car or van to cover the balloon payment.

Lease Purchase Agreement
A Lease Purchase agreement is determined by the cost of the vehicle, the contract length and the estimated future value of the vehicle which is based on the proposed annual mileage. In paying the “balloon figure” at the end of the contract you complete the agreement and the car is yours to keep. If you trade the car in for another, then any allowance over and above the balloon payment is yours and can be put towards your deposit on your next car. Likewise, if the allowance is less than the balloon, then you are responsible for the shortfall.

The key features of Lease Purchase are: Eventual ownership of the vehicle Flexible initial deposit. The car can be written down in your books-for businesses All interest paid can be off-set against tax-for businesses No VAT on payments Option to take early settlement No restriction on mileage.

Finance Lease
The key features of Finance Lease are: No ownership of the vehicle Flexible initial deposit Up to 100% of monthly payments offset against profits-for businesses Low monthly payments VAT on payments Option to take early settlement No restriction on mileage.

The monthly rental in a Finance Lease is determined by the cost of the vehicle, the period and the estimated future value of the vehicle, which is based on the proposed annual mileage. A payment equivalent to the estimated future value is payable at the end of the contract. At the end of the contract period, the vehicle is sold and the proceeds returned to the lessee.

Outright Purchase

You may decide that leasing is not for you as you prefer to own your vehicle outright. If that’s the case please contact us as we are able to sell vehicles at a very competitive price outright. Whether it is a new, used or imported vehicle we can offer vehicles for outright purchase.