We offer you the most competitive and flexible leasing options in the market
At CBVC, we understand that every customer has unique car leasing needs. That's why we offer a diverse range of leasing finance products designed to provide you with flexible, affordable and hassle-free solutions. Whether you are a business owner in need of a fleet or an individual seeking a personal vehicle, our leasing finance products cater to all. We pride ourselves on being innovative and offer a wide range of finance and leasing options, as well as highly tax-efficient salary sacrifice schemes.
Our Finance Products:
Business Contract Hire:
Business Contract Hire (BCH) is a popular way for businesses to lease vehicles for their employees. We'll explain what business contract hire is, how it works, and the tax implications for both the business and the employee.
When a business enters into a lease agreement, they agree to pay a fixed monthly fee for the use of the vehicle for a set period of time typically between 2 to 5 years. The monthly fee includes the cost of the vehicle, delivery, Vehicle Excise Duty (included rate as at time of quoting) and any additional services that the leasing company offers, such as a maintenance package if chosen.
At the end of the lease period, the vehicle is returned to the leasing company, and the business has the option to enter into a new contract for a new vehicle.
For a full explanation of Business Contract Hire, please click here.
Personal Contract Hire:
As a leading car leasing broker, we understand that PCH can be a confusing concept, so we've put together the information you need to make an informed decision about whether PCH is right for you.
Personal Contract Hire (PCH) is a type of car leasing agreement that allows you to drive a new car for a fixed period of time, usually between 2 and 5 years. With PCH, you pay an initial deposit and then make monthly payments for the duration of the lease. At the end of the lease, you simply return the car to the leasing company.
For a full explanation of Personal Contract Hire, please click here.
Finance Lease:
Finance Lease (FL) is a fixed-term rental agreement where the vehicle remains the property of the finance company and you have the use of the vehicle. It is often used for LCVs (Light Commercial Vehicles) but can be used for other types of vehicles too.
You pay an initial rental which is followed by subsequent monthly rentals and sometimes it is followed by a larger final rental, which will be based on the vehicle's expected value at the end of the contract. The rentals are subject to VAT.
The way Finance Lease differs from Contract Hire is that at the end of the agreement you must sell the vehicle to a third party. You will receive a large proportion of the sale price (less the final rental if applicable) with the balance of the sale proceeds being paid to the finance company.
If the agreement has a large final rental and the sale price is less than the final rental, you will be required to make up the difference.
Contract Purchase (Business Customers Only):
Contract purchase is a form of hire purchase where the payment plan is broadly similar to that of a lease, so great for cash flow, the company pays a regular monthly fee for an agreed contract length to use a vehicle. At the end of the agreement, you can either:
- Part exchange the car and use the equity towards a deposit for your next vehicle
- Buy the car for a pre-agreed amount
- Hand the car back to the leasing company (depending on the mileage and condition restrictions)
With three options to pick from at the end of your agreement, contract purchasing offers plenty of flexibility. It's popular with businesses who need a fleet of new vehicles and want to pay in a steady and affordable way. As with HP qualifying businesses can write vehicles down and offset interest against tax.
Hire Purchase (Business Customers Only):
Business Hire purchase (HP) is a way to finance the purchase of a new or used car or commercial vehicle. Usually, you put down a deposit and then pay the cost of the vehicle in monthly instalments, with the loan secured by the car. This means you do not own the car until the last payment is made. Usually HP used as a way of protecting cash flow with the intention of owning the vehicle at the end of the contract, qualifying businesses can use capital allowances and offset the interest paid against tax.
HP is a very popular form of financing for commercial vehicles as the capital cost is spread over the period yet the company still can offset 100% of the cost against tax in the first year using the Annual Investment Allowance (IAI). Battery Electric cars also attract 100% First Year Allowances.
Salary Sacrifice:
A salary sacrifice scheme is a tax efficient way for you to provide ultra low emission cars to all of your employees, even those who were not previously eligible for a Company Car. Salary sacrifice works best for ultra-low emission cars and zero emissions cars offer particularly impressive savings, because BiK percentages are capped at a maximum of just 2% until April 2025. CBVC arrange a lease of a zero emission company car on corporate terms (a contract hire arrangement) to you, your employee sacrifices from their gross salary to pay for that car (usually including insurance), getting the security of a brand new environmentally friendly company car, and the tax, National Insurance Contributions (NIC) and the Health and Social Care Levy (HSCL) saved on the sacrifice should be greater than that paid on the benefit offering savings to both employees and employers.
Want to know more:
Contact us now - or call us on 01283 351201.
