ment.
Key Benefits Hire Purchase:
Lower initial outlay than outright cash purchase The vehicle appears as an asset on your balance sheet You can claim capital allowances A choice of fixed or variable interest rates Interest on repayments can usually be offset against taxable
profits Disadvantages: monthly repayments are normally higher than with contract purchase and you cannot reclaim VAT on the vehicle's purchase price. You are responsible for all the risks of owning , administering, running, maintaining and disposal of the vehicle.
Sale & Lease Back Owning your fleet used to be a viable option for cash-ric.companies but the recent steady fall in secondhand car values is leaving fleet owners exposed to unexpected losses. As a result, increasing numbers o.companies are turning to contract hire instead. Sale & Leaseback allow.companies to switch the entire fleet immediately to contract hire without changing a single vehicle or alternatively have the entire fleet replaced.
Key Benefits of Sale and Leaseback
Release capital tied up in the fleet, which can be redirected to your core business Eliminates the risk of depreciation and hassle of disposal Makes budgeting easier since you pay a fixed monthly amount under your contract hire agreement Gives you the option of including maintenance costs, relief vehicles and roadside assistance in the fixed monthly payment Offers VAT savings by removing your fleet from the balance sheet Improves you.company's borrowing potential Allows an immediate change to contract hire without any operational implications for your vehicles or drivers All the normal benefits of Contract Hire (see above) Sale & Leaseback usually makes far more financial and administrative sense than a gradual changeover to contract car hire.
You can find out more information at
vehicleoptions.biz/ "
