Finance
Contract Hire
Contract Hire for businesses allows the use of vehicle for a fixed period of time with a predetermined mileage at a fixed monthly cost without having the hassles and costs associated with owning a vehicle. The finance house take the risk on residual values so there are no hidden depreciation costs. Also available for individuals, see Personal Contract Hire (PCH).
The advantages of Contract Hire vary according to each clients needs, however some key benefits may include:
- Off-balance sheet funding
- Alternative credit line
- Our combined buying power to obtain fleet discounts
- VAT and tax advantages above ownership of vehicles for most business users
- Accurate budgeting with fixed rentals for contract period
- Administration & overheads reduced with the removal of vehicle disposal hassles
- Include Plan Solus Maintenance and fix the costs of motoring for up to four years
- No risk on resale values, interest rates, operating costs
- Leasing companies benefit from extra manufacturer discounts and bonuses, meaning they buy the vehicles for less than most of us can, thus lowering monthly payments.
Additional services can be included within your monthly payments: * Insurance Packages * Breakdown Services * Plan Solus Maintenance * Relief Vehicles *Fleet Management software providing bespoke management information
Please contact your local Plan branch for more information.
Personal Contract Hire (PCH)
Personal Contract Hire (PCH) means that individuals enjoy the many benefits that businesses have taken advantage of for years. You gain the use of a vehicle for a fixed period of time with a predetermined mileage at a fixed monthly cost without having having to worry about the problems and depreciation costs associated with vehicle ownership.
The Hire Agreement is regulated by the Consumer Credit Act 1974.
The advantages of Personal Contract Hire vary according to each clients needs however some key benefits may include:
*Excellent Special Offer rates always available on various models. *Alternative credit line *Our combined buying power to obtain fleet discounts *Fixed cost motoring for up to four years *Drive brand new vehicles with less initial outlay than other finance types *No risk on resale values, interest rates, operating costs
Plan Solus Maintenance helps to fix the costs of vehicle service, maintenance a repair for the term of the contract, please ask your local branch for more information.
Contract Purchase
Contract Purchase from Plan allows a business user to have the use of a vehicle for a fixed period of time, with a predetermined mileage, at a fixed monthly cost, without having the hassle involved in running and maintaining the vehicle. This same finance Type is available for individuals but is called PCP or Personal Contract Plan.
There is an 'optional' balloon payment at contract end which is a fixed amount detailed within the quotation and agreement, the client can have eventual ownership of the vehicle by paying the balloon or you can decide to sell the vehicle and all proceeds after the balloon payment are the customers. Sometimes the balloon payment is referred to as a Guranteed Future Value or GFV.
The advantages of Contract Purchase vary according to each clients needs and existing arrangements. Key benefits include:
- On-balance sheet (similar to Hire Purchase)
- Alternative Credit Line / Cash Flow benefit
- Capital allowances available
- Finance payments do not attract VAT
- Tax relief available on interest and maintenance
- Guaranteed resale value
- Similar rentals to those of Contract Hire
End of contract options: * Vehicle purchase * Vehicle returns to Finance Company * Eliminates vehicle disposal problems when the option of return to Finance Company is taken up
Plan Solus Maintenance can be included to all of our finance packages, ask your local branch for more information.
Personal Contract Plan (PCP)
The Personal Contract Plan provided by Plan has been designed to give you the enjoyment of obtaining a new car, every few years, without having to buy it outright.
Instead you simply pay for and have the use of the car during the term of the agreement. At the end of that time you can either return the car to us, or you can buy the car outright for an agreed price, set at the start of the contract and based upon an agreed mileage, period of contract and residual value of the car.
The Personal Contract Motoring Plan is a funding package based on a hire purchase agreement, combined with options to offset some of the risks associated with running a car.
Sold in dealership showroom as Ford Options, Peugeot Passport, ETC, ETC.
Key Benefits:
- Use the Plan and our funding partners buying power, normally only available to large fleet customers
- Eliminate risks involved in acquiring a vehicle
- Eliminate vehicle depreciation risk
- Competitive rates and discounts
- Options to include maintenance, breakdown cover and GAP insurance
Plan Solus, our fixed cost maintenance plan can be added to any one of our finance packages, contact your local branch for more information of for a free quotation.
Hire Purchase (HP)
Hire Purchase from Plan is available for both businesses or individuals.
This is the traditional method of financing a vehicle, a secured loan where the asset becomes the property of the buyer at the end of the contracted period. The monthly payment is determined by the value of the asset, the current interest rates, amount of deposit paid, the period of the contract.
There are different types of HP agreement available from Plan including balance payment schemes and HP with Balloon (also known as Lease Purchase).
The pro's and con's of this funding method vary dependant on customer type and agreement types, therefore its best that we consult with you prior to pointing them out. Please contact your local Plan branch for more information.
Finance Lease
Finance Lease is available for business users only and normally only suitable for VAT registered businesses.
The VAT and tax benefits are the same as a Contract Hire agreement, its an 'off balance sheet' funding method. The monthly rental is determined by the total cost of the vehicle, the contract period and the estimated future value of the vehicle. A balloon payment can be added to the end of the contract period which would be equivalent to the estimated future value based on a proposed annual mileage. Adding an offset balloon payment helps reduce the monthly rental amount.
The balloon payment is payable by the customer at the end of the contract, this is normally covered by the sale of the vehicle which is the customers responsibillity. At the end of the contract period, the vehicle is usually sold and the proceeds returned to the Lessee, an extended rental period can be arranged.
A Finance Lease is flexible to the extent that the contract can be terminated by the customer selling the vehicle or trading it in for a new one at any time. The sale price of the vehicle needs to cover the outstanding rentals and balloon if one has been applied, this is normally achieved (subject to its condition and mileage). The proceeds of the sale are retained by the customer and some businesses will offer the employed drivers the option to purchase the vehicles at contract end, this can be a good incentive for the drivers to keep the vehicles in good condition.
Plan Solus Maintenance packages are available for all funding types, if required
Sale and Leaseback
Sale & Leaseback can only be used if your business has ownership of its vehicles. We will arrange for your fleet of vehicles to be purchased at an agreed market value and leased back to the business through a Contract Hire or Finance Lease agreement.
This method is normally used to remove the tax burdens of vehicle ownership and inject cash into the business thus increase your working capital. It also removes any re-sale hassles and residual value risks.
Short Term Contract Hire (Mini-lease)
Plan Mini-Lease also known as Short term Contract Hire operates in the same manner as Contract Hire, but as the name suggests offers contracts for a shorter period. Contract periods from 3-12 months are available. Available for businesses and individuals.
This funding method is failrly specialised due to the high risks concerning residual values for the funder/leasing company. We will always have a selection of Minilease deals available, although they may not be advertised on our site due to marketing restrictions. The offers will normally be based on a fixed selection of vehicles that would have been pre-purchased by Plan or one of our leasing company partners.
Although the payments tend to be a little higher than longer term Contract Hire, the mileage allowances are normally quite generous.
This product is ideal for companies with new start employees on probationary periods, gap fillers when awaiting a new vehicle delivery, or when requirements for vehicles fluctuate. Also good for businesses and individuals that like to be seen in a new car or enjoy a regular change.
Contact your local Plan branch for current offers or more information or for an updated list of vehicles available.
