08450 949 121
info@switchfinancial.com
SWITCH CAR & BIKE FINANCE
Finance options for individuals
Finance options for business users
Finance options for individuals
Finance options for business users
info@switchfinancial.com l Tel: 08450 949 121 l Switch Financial Imperial Business Centre Grange Road Darlington DL1 5NQ
Consumer Credit Licence Number 613996
Consumer Credit Licence Number 613996
Finance for individuals
A Personal Contract Purchase is a way of reducing your monthly payments compared to a conventional car loan. During the agreement, you only have to finance the depreciation of the vehicle and, at the end of the agreement, you make a single (balloon) payment to complete the agreement and take full ownership of the car.
This type of regulated agreement is normally a fixed cost, fixed period loan of money to purchase goods where the goods provide security for the lender. It is well suited for the purchase of motor vehicles. You are effectively the owner of the car, but in law the title of the car will not pass until the loan is fully repaid.
Personal Contract Hire - aimed at the non-corporate and non VAT registered customer. This is largely due to people opting out of company car schemes and wanting to run a vehicle that fits within their monthly budget. As well as the ex company car user, more people are opting for PCH due to the ease of operation of a Contract Hire agreement which provides the following benefits:
* You choose the vehicle and decide upon the term of the contract and mileage.
* You use the vehicle for the agreed term and pays regular rentals + VAT.
* At the end of the contract you give the vehicle back and start again with a new vehicle (terms apply).
Finance for Business Users
If your business is making a profit and is VAT registered, Contract Hire is likely to be the best option for you as long as you intend to change the vehicle within four years. However, if you are looking to acquire a vehicle to keep it for more than four years you may prefer to look at a Lease Purchase agreement.
Contract Hire is a method of funding the use but not the ownership of a vehicle. The contract provider hire the vehicle to you for an agreed period (Primary Period of Hire, usually 36 or 48 months) for a fixed monthly sum and at the end of the contract you hand the vehicle back to us.
This type of agreement transfers substantially all the risks associated with ownership to the contract provider. You are not responsible for selling the vehicle at the end of the contract, subject to the vehicle being kept in good condition and not exceeding the agreed mileage. Service and maintenance plans can be included with Contract Hire agreements to cater for fixed cost motoring.
You will need to consult with your accountant to fully understand all the implications for your business and how to optimise the tax allowances available using this type of agreement.
In order to provide the best monthly price the vehicle must be VAT qualifying. This covers all new vehicles and certain second-hand vehicles depending on the previous keeper's circumstances.
Contrary to popular belief, Contract Hire is no more expensive than a similar purchase agreement which has a final balloon payment included, and after the tax advantages have been taken into account, it can be considerably cheaper. So all things being equal, you are better off using Contract Hire as the route to funding your next vehicle.
All Contract Hire agreements now provide the facility to upgrade and start a new agreement with the lease provider without early termination charges after two years (terms apply).
In summary these are the benefits of Contract Hire:
* Use of the vehicle for the duration of the agreement without responsibility for disposal at the end.
* Fixed motoring costs - if maintenance package included.
* Tax implications that can make Contract Hire a far more cost effective alternative to other funding options.
* Change your car every two years without early termination charges (terms apply).
Ultimately, however, you will need to consult your own advisor to decide what is best for you.
The term 'Lease Purchase' was introduced into the finance industry to describe a Hire Purchase or Conditional Sale contract with a payment structure similar to a lease. i.e. Instead of a deposit, an 'Advance Payment' may be paid. It is normally a fixed cost, fixed term loan and you become the owner of the goods. However, in law, the title will not pass until:
* All the regular payments have been made.
* The goods are kept insured.
* The goods are kept in good condition.
On cars over the value of £15,000, the lease provider may include a final (balloon) payment on our Lease Purchase agreements to help reduce the monthly payment.
In Summary the benefits of Lease Purchase are:
* Lower monthly payments with final (balloon) payment included.
* You own the vehicle - once all payments have been made.
Please note: this is intended as background information only. You should consult your financial advisor before making any decisions.
A Personal Contract Purchase is a way of reducing your monthly payments compared to a conventional car loan. During the agreement, you only have to finance the depreciation of the vehicle and, at the end of the agreement, you make a single (balloon) payment to complete the agreement and take full ownership of the car.
This type of regulated agreement is normally a fixed cost, fixed period loan of money to purchase goods where the goods provide security for the lender. It is well suited for the purchase of motor vehicles. You are effectively the owner of the car, but in law the title of the car will not pass until the loan is fully repaid.
Personal Contract Hire - aimed at the non-corporate and non VAT registered customer. This is largely due to people opting out of company car schemes and wanting to run a vehicle that fits within their monthly budget. As well as the ex company car user, more people are opting for PCH due to the ease of operation of a Contract Hire agreement which provides the following benefits:
* You choose the vehicle and decide upon the term of the contract and mileage.
* You use the vehicle for the agreed term and pays regular rentals + VAT.
* At the end of the contract you give the vehicle back and start again with a new vehicle (terms apply).
Finance for Business Users
If your business is making a profit and is VAT registered, Contract Hire is likely to be the best option for you as long as you intend to change the vehicle within four years. However, if you are looking to acquire a vehicle to keep it for more than four years you may prefer to look at a Lease Purchase agreement.
Contract Hire is a method of funding the use but not the ownership of a vehicle. The contract provider hire the vehicle to you for an agreed period (Primary Period of Hire, usually 36 or 48 months) for a fixed monthly sum and at the end of the contract you hand the vehicle back to us.
This type of agreement transfers substantially all the risks associated with ownership to the contract provider. You are not responsible for selling the vehicle at the end of the contract, subject to the vehicle being kept in good condition and not exceeding the agreed mileage. Service and maintenance plans can be included with Contract Hire agreements to cater for fixed cost motoring.
You will need to consult with your accountant to fully understand all the implications for your business and how to optimise the tax allowances available using this type of agreement.
In order to provide the best monthly price the vehicle must be VAT qualifying. This covers all new vehicles and certain second-hand vehicles depending on the previous keeper's circumstances.
Contrary to popular belief, Contract Hire is no more expensive than a similar purchase agreement which has a final balloon payment included, and after the tax advantages have been taken into account, it can be considerably cheaper. So all things being equal, you are better off using Contract Hire as the route to funding your next vehicle.
All Contract Hire agreements now provide the facility to upgrade and start a new agreement with the lease provider without early termination charges after two years (terms apply).
In summary these are the benefits of Contract Hire:
* Use of the vehicle for the duration of the agreement without responsibility for disposal at the end.
* Fixed motoring costs - if maintenance package included.
* Tax implications that can make Contract Hire a far more cost effective alternative to other funding options.
* Change your car every two years without early termination charges (terms apply).
Ultimately, however, you will need to consult your own advisor to decide what is best for you.
The term 'Lease Purchase' was introduced into the finance industry to describe a Hire Purchase or Conditional Sale contract with a payment structure similar to a lease. i.e. Instead of a deposit, an 'Advance Payment' may be paid. It is normally a fixed cost, fixed term loan and you become the owner of the goods. However, in law, the title will not pass until:
* All the regular payments have been made.
* The goods are kept insured.
* The goods are kept in good condition.
On cars over the value of £15,000, the lease provider may include a final (balloon) payment on our Lease Purchase agreements to help reduce the monthly payment.
In Summary the benefits of Lease Purchase are:
* Lower monthly payments with final (balloon) payment included.
* You own the vehicle - once all payments have been made.
Please note: this is intended as background information only. You should consult your financial advisor before making any decisions.
Finance is available for almost any car from almost any licensed car dealer. We can in most cases offer you finance even if you have been refused finance in the past.