Finance Options for Contract Hire and Leasing
Thanks for visiting GB Vehicle Contracts website; this may well be your first venture into leasing or you would like to know how we operate?
Below is a simple 6 step guide to dealing with GB Vehicle Contracts which we hope will answer any questions you may have?
If not, please feel free to call us on 0845 437 9196 or submit an enquiry; one of our Sales team will happily talk you through anything that needs clarification.
1. Choose Your Vehicle
Our website contains over 5500 derivatives of vehicle each with an indicative price based on a typical payment and mileage profile. Once you have an idea of which vehicle(s) you are interested in simply give us a call; one of our experienced sales team will work with you to get you the best price based on your specific mileage, term and vehicle options. With access to leading finance houses and a network of UK Dealerships our deals are constantly being updated, speaking directly to our sales team will ensure you get the most up-to-date offers.
2. Choose your Finance Method
Our Sales Team will supply impartial advice on the best funding method for your business or personal requirements. At this time we will ask you to complete a simple Credit Proposal Form in order that we can establish a line of credit for you.
There are many ways of funding your new vehicle; we have listed below the most popular options.
2. 1. Contract Hire and Personal Contract Hire
This is basically a convenient and hassle-free hire agreement; the user simply pays a monthly rental for use of the vehicle over a pre-determined term and mileage. There is no risk of unpredictable residual values at the end of the agreement as it is simply ‘handed-back’ to the finance company for disposal. This is a very popular method for businesses looking for VAT and tax efficiencies and with private users looking for fixed-cost motoring.
2. 2. Contract Purchase and Personal Contract Purchase
This is a purchase agreement with an added bonus in that it offers low fixed monthly payments with no risk of a potential fall in the residual value of the vehicle due to a ‘balloon’ payment at the end of the agreement guaranteed by the finance house which is set at the beginning of the agreement based on the term and mileage that you choose.
At the end of the agreement you have the option to pay the balloon payment and keep the vehicle or trade/sell it using any equity that you have towards your next vehicle; or simply hand it back to the finance company.
This method is popular with non-VAT registered companies and those individuals wanting fixed price motoring with flexibility.
2. 3. Finance Lease
This is a hire agreement with VAT benefits for business users who want to handle the admin of their vehicles and have them shown on their balance sheet. The hirer can choose to pay the entire cost of the vehicle plus an interest cost over the lease period and receive a percentage of the proceeds following the sale of the vehicle or pay lower monthly rentals with a final balloon payment based on the resale value of the vehicle.
2. 4. Hire Purchase / Lease Purchase
This is a purchase agreement for a business or individual who wants eventual ownership of the vehicle, which is acquired when all payments, including the option to purchase have been made. Part of the capital cost of the vehicle payment may be deferred into a ‘balloon’ payment at the end of the agreement, the anticipated value of the vehicle.
2. 5. Outright Purchase
The chances are, GB Vehicle Contracts buys more vehicles each year than you; let us do the negotiations with our preferred franchised UK dealerships and we should be able to offer you a considerable saving on new or pre-owned vehicles.
Once we have confirmed the cost of your specific vehicle requirement(s) we will ask that you sign a Vehicle Order confirming these details. We will, on receipt of this signed authorisation, order the vehicle from our national network of franchised dealers. We will then send you the Contractual Agreement for signing and returning to us here at GB Vehicle Contracts.
4. Order Progression
It may well be only 7-10 days before you are sat behind the steering wheel of your new vehicle; if however you have ordered a specific specification or a specialist vehicle we may need to await production of that vehicle. Be assured that our Sales Team will keep you updated on the progress of your order throughout; making suitable arrangements for a convenient delivery time for you.
5. Delivery of your vehicle
Delivery of your new vehicle will be Free-of-charge to any mainland UK address. Deliveries will be made via our network of UK franchised dealers to ensure a professional handover of the vehicle; a familiarisation of the controls and equipment on the vehicle (if required) will be provided.
6. Ongoing Service
Our team of Customer Advisors and indeed your original Sales Contact at GB Vehicle Contracts are available to answer any questions and to advise on any matters relating to your vehicle(s) and finance agreement(s). We will periodically check with you that your vehicle(s) and agreement(s) are still perfectly matched with your evolving needs.
