We believe that every business should have the flexibility to access the vehicles they need. Whether it’s one vehicle or a small fleet, we offer a range of finance deals to get your company on the road. There is a new or used vehicle to suit your business no matter what your budget is. Let us help you find the right finance option for you.
We are thrilled to offer three business finance plans, so you have the ability to get the vehicles you need at a price that is affordable for your business. From estate cars to small SUVs, there is a finance offer to suit every business. Our friendly team of experts are on hand to help you find the deal that is right for you.
A Business Contract Purchase is for businesses who want to own their vehicles, without the risk of depreciating assets. In order to take out a BCP finance agreement, your company must be a VAT registered business.
BCP agreements are ideal for businesses who run expensive vehicles, who don’t want the worry of losing the value on their vehicles. All you have to do is choose a brand-new car, pay a deposit and set up monthly payments to cover the instalments. Then you can put your new business vehicle to good use.
It is important that you consider all business finance plans before you enter into an agreement. A BCP agreement may not be the best choice for your company.
If you are looking for a single car or a whole fleet, a BCP agreement allows your company to lease vehicles on a contract purchase basis. You will be required to pay for the vehicle in monthly instalments over an agreed period of 24-48 months.
You will not have to pay VAT on the monthly payments if your business is a VAT registered company. However, if you take out an optional maintenance package, you will have to pay VAT on any service costs.
At the end of your BCP agreement, your business has the option to purchase the car based on its Guaranteed Minimum Future Value (GMFV). This is known as a final balloon payment, which can be paid as long as the terms of the finance agreement have been met.
Your business is not obliged to buy the vehicle at the end of the contract, but the option to buy is there should you wish to keep the car. When a Business Contract Purchase expires, there are three options available:
Return the vehicle to the dealership
Pay the final balloon payment and your business will own the vehicle outright
Refinance the final rental amount by paying the balloon payment in monthly instalments. Once all payments have been received, you will then own the vehicle.
Also known as business lease purchase, Business Hire Purchase is a finance agreement that offers vehicle funding for companies who want to buy a new or used car without having to spend money upfront. It is purely a finance package, so it does not include maintenance or other value-added services that you would expect from a business contract purchase agreement.
A Business Hire Purchase finance agreement is not for every business. It is important to review all your options before committing to a contract.
You will be required to pay an initial deposit followed by monthly instalments throughout the duration of your contract. Both the deposit and the monthly payments are calculate using the retail value of the vehicle, the length of the contract and the estimated residual value of the vehicle at the end of the agreement.
The vehicle will belong to your business as soon as the lease agreement has begun. However, the car has to be purchased at the end of the contract with a final balloon payment. The slower the vehicle’s value depreciates, the better the deal you get because your business will take on the residual value of the car.
When your Business Hire Purchase agreement comes to an end, your company will be required to pay a final balloon payment. Once this is paid, you will have full ownership of the vehicle.
As soon as you sign the agreement at the beginning of the contract, your company agrees to purchase the vehicle at the end of the agreed duration. Your business will not be given the option to return the vehicle and your company is liable for the full value of the car.
Business Contract Hire is a form of leasing, which allows your company to drive the vehicle over an agreed period of time with a set mileage allowance. Not only is it a cost-effective way to gain access to new vehicles, but it also prevents you from feeling the effects of any large drops in value that you would normally associate with owning a new car.
You do have the option to include vehicle service maintenance and repairs in your BCH agreement, giving you the flexibility to budget for all your motoring costs with ease. In order to be able to take out a BCH agreement, your company has to be a sole trader, partnership, limited company or a public limited company.
A BCP agreement allows businesses to finance a new or used vehicles with an agreed minimum down payment and a mileage allowance. The minimum down payment must be paid in advance and is usually equal to three monthly instalments.
The mileage allowance is agreed in advance, the minimum being 10,000 miles per annum and a maximum of 40,000 miles per annum. An excess mileage rate is charged if you exceed the mileage allowance. You will be charged for this when your contract ends.
Business Contract Hires is subject to VAT, 50% of which can be claimed back. When the agreement is over, the vehicle must be handed back to the dealership in good condition. If the vehicle has sustained any damage, you will incur extra costs to cover any repairs needed.
When you BCH agreement ends, your business will have 2 options to choose from:
Return the vehicle to the dealership
Extend the leasing agreement with the dealership
Your company will not be able to purchase the vehicle and will gain no valuable assets. When you come to return the car, it must be given back in a condition that meets the standards of the BVRLA ‘Fair Wear and Tear’ guidelines. You may incur extra charges if the vehicle fails to meet these standards.
This won't take long...
Your enquiry has been sent and we will contact you using the details provided as soon as possible!
Please complete the form below:
When you give us your contact details, Group 1 Automotive companies, our authorised dealer network or our agents may use your data to email or phone you about Group 1 Automotive products, services and offers which we believe may be of interest to you. We may also contact you to conduct market research, so we can improve our service to you. We never sell or share your information with third party organisations.
Please contact us if you require additional information.
168 Great North Road