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Here at Sprint Contracts, we have access to the complete range of finance products available in the UK.
Which finance product to choose?
Your Account Manager will help you find the right finance option to suit your personal or business circumstances.
Click on each button below for a detailed explanation of each funding type –
 
 Contract Hire Essentially an Operating Lease, Contract Hire can include the provision of maintenance, a relief vehicle, breakdown cover, road fund licence and vehicle collection and disposal. The simplest form of leasing a vehicle, all you have to do is arrange for fully comprehensive insurance and pay for petrol. With a low initial outlay (usually only 3 or 6 months in advance) and fixed monthly rentals, you'll know exactly what your motoring costs will be. So no more unexpected bills and less time spent on administration. Contract hire is also very efficient because the vehicle is treated as 'off balance sheet' which improves the gearing ratio in your accounts. The rentals can be offset against taxable profits for maximum tax efficiency. If your business is VAT registered you can also reclaim 50% of the VAT on the finance element of the rentals, or 100% if the car is used exclusively for business use. All VAT payable on the maintenance element of the rental is fully recoverable, irrespective of use. Finance Lease This provides many of the benefits of ownership combined with valuable tax advantages for your business. Rentals can be paid monthly, quarterly, or annually through the lease period, which is structured to the useful life of the vehicle (normally 2-4 years). You can choose between paying the entire cost plus charges over the lease period or agreeing to pay a final 'balloon' payment based on the anticipated resale value of the vehicle allowing you to tailor the rentals to match your business's cash flow. The car is classed as an asset for balance sheet purposes during the agreement and the rentals can be offset against taxable profits. If your business is VAT registered you can also reclaim 50% of the VAT on the finance element of the rentals, or 100% if the car is used exclusively for business use. When the car is sold at the end of the lease the sale proceeds, less a nominal sum, will be refunded to you as a rebate of rentals. This rebate will attract VAT. Hire Purchase The 'traditional' way to purchase a car is by Hire Purchase. After paying the initial deposit the balance plus interest charges is repaid over an agreed period by fixed, equal monthly payments. The agreement can be from 1 to 5 years and when all the payments have been made you become the owner of the vehicle. There is no VAT added to the payments and the interest charges are tax deductible. The car is classified as a company asset, which allows it to be written down against taxable profits. The VAT is not recoverable on the purchase price of the vehicle unless it is for 100% business usage. Lease Purchase Lease Purchase is similar to Hire Purchase and provides the same tax and financial benefits as hire purchase but the monthly payments can be reduced by incorporating a 'balloon' payment at the end of the agreement. This method of funding provides greater flexibility on the monthly rentals however it can result in you having to make up a shortfall if the resale value of the car is less than the balloon payment. Personal Contract Hire This method of funding provides a fixed monthly rental for a vehicle over a fixed period and mileage. Road fund licence is included for the duration of the agreement and maintenance, breakdown recovery and replacement vehicles can be included in the contract. Rentals take into account the vehicles future residual value so you do not repay the entire capital cost, effectively you are just paying for the use of the vehicle. At the end of the contract the vehicle is returned to the leasing company, which means that you have no depreciation risk or problems with disposal of the vehicle. Personal Contract Purchase An excellent funding method for private individuals. After paying the initial low deposit, the balance plus interest charges is repaid over an agreed period (usually between 24-36 months) by fixed, equal monthly payments and because PCP's are purchase plans the payments do not attract VAT. At the end of the contract you can either hand the car back or buy it for a predetermined price. Sale and Leaseback An agreement for companies who already own their vehicles where the existing fleet is sold to a finance company and then re-financed back on more beneficial or attractive terms to give ultimate tax and cash flow benefits whilst allowing them to retain the use of the vehicle yet release capital from the sale. |
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