EMC Vehicle Contracts - Car Funding Glossary
EMC vehicle Contracts can offer a wide range of different types of funding methods to suit all manner of businesses or individuals alike. You'll find plenty of useful information below, describing the features of different funding types.
Alternatively, if you'd like to discuss the best vehicle funding option for you, please call one of our consultants on 0870 903 5323.
- Contract Hire
- Finance Lease
- Contract Purchase
- Lease Purchase
- Purchase and Leaseback
- Personal Contract Hire
Contract Hire
A popular choice for VAT-registered companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included.
With this VAT-beneficial financing package, one regular rental payment covers all risks, including costs of depreciation and disposal, for an agreed period of time and mileage. Road Fund Licence and roadside rescue is included, but maintenance and relief vehicle provision are options that can be added and charged to the rental payment.
Finance Lease
Ideal for VAT-registered companies who want to handle the administration of their vehicles, and have the asset shown on their balance sheet.
A VAT-beneficial finance option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.
Contract Purchase
For companies with high-value cars who would like the option to purchase the vehicles, but don't want any depreciation risks.
The customer acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back. Contract Purchase has the added benefits of savings on maintenance and relief vehicles, and comes with full Dial Rescue breakdown cover and road fund licence.
Lease Purchase
For non VAT-registered companies that want eventual ownership of the vehicle.
A funding agreement where the company acquires ownership when all the payments, including the option to purchase, have been made. Part of the capital cost of the vehicle payment may be deferred into a payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed leasing period.
Purchase and Leaseback
For companies wishing to retain the use of their vehicles, yet generate capital from their sale, whilst transferring to a VAT-beneficial funding method.
If a company currently owns its vehicles, this option means Network will purchase the vehicles for an agreed price and lease them back using either contact hire or finance lease, according to customer preference.
Personal Contract Purchase
For private individuals who want a hassle-free and cost-effective way to finance and maintain a vehicle.
Consultation and assessment of your requirements may reveal that Drivewise - Network's personal leasing product - is the ideal vehicle financing solution for your business and personal needs. Drivewise allows you to enjoy significant tax advantages and a choice of new or used vehicle every two years in return for a fixed monthly charge that is easy to budget for, as well as an all-inclusive (optional) maintenance and breakdown package.