What is Finance Lease?
Funding your vehicle with Finance Lease gives you options at the end of the agreement. It also offers tax benefits because vehicle ownership is not an option. Instead, an optional final payment and low annual 'peppercorn' rental can extend the lease period. Eventually, the vehicle must be sold to an unrelated third party with any outstanding finance paid back to Stellantis Financial Services. If you sell the vehicle for more than you owe, the profit's yours to keep.
If you lease a vehicle exclusively for commercial use, you can claim back 100% of the VAT, and if the car is used as a private vehicle, you could still reclaim at least 50% of the VAT. Finance Lease provides fixed monthly rental payments helping you to budget with confidence, and can be tax efficient for your business. Consider a Finance Lease agreement if you want to use the vehicle, not own it, want to finance your vehicle in a tax efficient way, or you'd like a new vehicle every few years.
What is Business Contract Purchase?
Business Contract Purchase is a flexible finance option that gives you three choices at the end of your agreement. With Business Contract Purchase, monthly payments are typically lower because part of the loan is deferred until the end of your agreement. The deferred amount is known as the Guaranteed Future Value (GFV), sometimes also known as Optional Final Payment. You can claim capital allowances on Business Contract Purchase vehicles, which means you can deduct part of the value from your profits before you pay tax.
If you purchase a vehicle exclusively for business use, you can claim back 100% of the VAT. Business Contract Purchase offers fixed monthly payments tailored to your budget, with the GFV offering protection against depreciation. It's available on new vehicles. Consider a Business Contract Purchase agreement if you want a choice of options at the end of your agreement, prefer lower monthly payments, or you'd like a new vehicle every few years.
What is Business Conditional Sale?
Conditional Sale is a traditional approach to financing, where you'll take ownership of the vehicle at the end of your agreement. Essentially, it's a loan with fixed monthly repayments over a chosen period, between 2 and 5 years. The finance agreement is secured against the vehicle being purchased and if you prefer, you can pay off the loan at any time before the chosen period end date. You can also claim capital allowances on vehicles you buy and use in your business, which means you can deduct part of the value from your profits before you pay tax.
If you purchase a vehicle exclusively for business use, you can claim back 100% of the VAT. Conditional Sale provides fixed monthly payments allowing you to budget with confidence, offers flexible deposit and repayment periods up to 60 months, and has no annual mileage restrictions. Consider a Conditional Sale agreement if you like things straightforward, want to own the vehicle at the end of the agreement, or you'd prefer to spread the cost of buying a vehicle.