At Swiss Vans we are dedicated not only to presenting you with the best deals but showing you in simple terms how we reach these deals and any potential risks generally to using them
CH Contract Hire
Contract Hire quite honestly we seldom quote as it tends to suit more basic vans rather than some of the exotic ones we tend to sell.
A deposit is upfront of say 3- 9 payments
Road Fund Tax is included
You cannot terminate early except with some hefty penalties
At the end of the contract the van is returned to the contract hire company and it must be in
pristine condition or you will be billed.
It best suits those who can look after vehicles and want large numbers of the sam vehicle.
Its treated as a rental so tax side company tax is treated equally over the hire period.
Myths- The most certainly is a credit check !
And insurance isn’t included
There is always a mileage restriction in place
Citroen Berlingo L1 Enterprise
3 payments down 35 x £149 a month 10,000 miles per year
Body work damage – £1000
Tyres and brakes worn – £550
Excess mileage at 15 PPM = 5,000 x .15 = £750
HP Hire Purchase and Lease Purchase
VAT is generally placed up front though this has been relaxed of late
Its a loan pure and simple, an asset. It can be ended at any time by settling off.
Generally speaking offering through the automotive industry you will get advertised rates but from some banks and supermarkets they still tend to advertise rate that they don’t offer to the general public apart from carefully selected circumstances.
The loan is 100% against tax for that financial year
It can have a balloon at the end to reduce payments
There is no restriction on mileage
In theory if you have a balloon you could have negative equity if you do a lot of miles or damage the van but at least you wont get a bill just a bitter pill !
There is usually an admin fee upfront or spread out over the loan duration
The vehicle is automatically yours after the last payment.
Place a deposit upfront in much the same way contract hire
NO VAT is paid upfront apart from the VAT on the advance rentals
eg. if someone says £2000 they mean £2000 + VAT = £2400
There is generally an admin fee too on first payment
There are two types of finance lease
With a balloon
Without a balloon
A balloon is set as a large final payment that is generally set as as a percentage of what the vehicle might be worth at the end.
Many customers initially look for the lowest monthly figure but when the come to change it dont have has much equity as they would like. The lower the monthly figure the higher the balloon as a general rule. Its worth paying a little more each month to reduce this balloon
Once the final payment is made the van must be sold to a third party unrelated by blood or business in terms of same director. There is nothing wrong with keeping the vehicle its just that ownership cannot be transferred back to the same company
Sone firms such BNP and Lombard charge a percentage of the sales price at the end so this is something to watch.
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- Not to use misleading headlines
- Not to use unfair comparisons
- Not to display important information in small print
- Not to not display risks non prominently
- To try and explain in basic terms
- Please see above for details for risks and charge that are common
- To make sure those doing the advertising understand the rules