Funding options comparison chart
| Meeting your requirements | Business contract hire | Personal contract hire | Lease purchase | Finance lease | Personal contract purchase | Outright purchase |
|---|---|---|---|---|---|---|
VAT recoverable on monthly rentals | applicable | not applicable | not applicable | applicable | not applicable | not applicable |
Finance/Taxation Issues | ||||||
Accurate monthly budgeting | applicable | applicable | applicable | applicable | applicable | not applicable |
Improved cash flow | applicable | applicable | applicable | applicable | applicable | not applicable |
Minimum capital expenditure | applicable | applicable | applicable | applicable | applicable | not applicable |
Fixed interest rates | applicable | applicable | applicable | applicable | applicable | n/a |
Capital allowances available | not applicable | applicable | applicable | not applicable | n/a | applicable |
Rental allowable against taxable income | applicable | not applicable | not applicable | applicable | n/a | not applicable |
Ownership of vehicle* | not applicable | applicable with conditions ** below | applicable | not applicable | applicable with conditions ** below | applicable |
VAT chargeable on rental | applicable | not applicable | not applicable | applicable | not applicable | not applicable |
VAT recovered on purchase cost by Network and passed on to customer in lower rental | applicable | not applicable | not applicable | applicable | not applicable | not applicable |
No depreciation risks | applicable | applicable | not applicable | not applicable | applicable | not applicable |
Vehicle running requirements | ||||||
No vehicle disposal problems | applicable | applicable | not applicable | not applicable | applicable | not applicable |
Reduced administration | applicable | applicable | applicable | applicable | applicable | not applicable |
On-going advice/support | applicable | applicable | applicable | applicable | applicable | not applicable |
Road fund license provided | applicable | applicable | not applicable | not applicable | applicable | not applicable |
Breakdown rescue cover | applicable | applicable | not applicable | not applicable | applicable | not applicable |
Replacement vehicle in case of breakdown | applicable | applicable | not applicable | not applicable | not applicable | not applicable |
Fixed charge maintenance** | applicable | applicable | not applicable | not applicable | applicable | not applicable |
VAT chargeable on services | applicable | applicable | not applicable | not applicable | applicable | applicable |
VAT recoverable on services | applicable | applicable | not applicable | not applicable | n/a | applicable |
Optional GAP insurance ***** | applicable | applicable | applicable | applicable | applicable | not applicable |
* = At end of contract with financing products
** = Optional
*** = Only 50% of the VAT relating to the finance element is recoverable if private use, 100% if only business use. 100% of the service element VAT (on contract hire only) is recoverable if business use.
**** = Road fund license is provided for the first year only
***** = GAP insurance covers the short fall between the write-off and value at time of loss