Pick Up Truck Finance Options Explained

Pick Up Truck Hire Purchase

• Low Deposit - VAT only
• Flexible repayment period - up to 60 months
• Fixed monthly repayment aids budgetary control and cashflow
• Monthly repayments are VAT free
• VAT deposit reclaimable (VAT registered customers)
• 100% of interest charges can be offset against taxable profits
• Vehicle is an asset on your balance sheet and benefits from writing down allowances:-
  • Year 1 - 50%
  • Year 2 - 25%
  • Year 3 - 25%, etc etc.
• Ownership of vehiclewill pass when the agreement is completed
• Ideal for those who require ownership of the vehicle

Pick Up Truck Finance Lease

• Deposits are usually the equivalent of three rentals, but can be any amount whatsoever
• Repayment period of up to 60 months
• VAT is paid monthly, then claimed back quarterly (if VAT registered)
• Rentals are 100% allowable against taxable profits
• Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
• Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
• Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility
• No mileage clauses

Pick Up Truck Contract Hire

• Deposits are anything from 3 rentals upwards
• Total budgetary control - fixed costs, as long as you stay within the mileage
• Monthly repayments are subject to VAT - VAT recoverable
• Rentals are 100% allowable against taxable profits
• Fixed maintenance package to include services, repairs, tyres, dependant on contract type
• At the end of the contract, simply hand the vehicle back
• The vehicle is subject to an inspection, where any reconditioning costs are charged to the customer - ideal for VAT registered larger fleet operators