Hire Purchase

A fixed rate finance option that allows the balance financed and interest to be paid in equal repayments. You can also choose to pay an ‘option to purchase fee’ at the end of the agreement if you want to own the vehicle.

The benefits of hire purchase are:

• Flexible deposits
• Fixed monthly repayments for ease of budgeting
• Various repayment terms
• The option to own the vehicle at the end of the agreement

Lease Purchase

A fixed-rate finance option that helps you or your business with cash flow. There is also an option to add a balloon payment that lowers your monthly outgoings during the agreement.

The benefits of lease purchase are:

• The repayments are not liable for VAT
• Working capital remains in your business
• Interest can be treated as an expense for tax purposes
• You can claim writing down allowances
• You can choose to own the vehicle at the end of the agreement

Leasing

If you are a business user, leasing offers you all the benefits of renting without ever owning the vehicle.

Leasing agreements usually consist of a Primary Period (normally 36, 48 or 60 months) during which you pay rent plus VAT, followed by a Secondary Period when the vehicle can continue to be leased for a nominal annual rental. At the end of the Primary Period, the vehicle can be sold on behalf of Coachlease, and you can take a rent rebate. Balloon leasing is another option that can be used to reduce monthly rentals by deferring a lump sum until the end of the Primary Period.

The benefits of leasing are:

• Affordable initial rental
• Fixed monthly rentals to help cash flow
• All or part of the rentals allowable against tax
• Interest can be treated as an expense for tax purposes
• You can claim writing down allowances
• An agreed percentage of the net sales proceeds are paid as a rebate if the vehicle is sold on behalf of Coachlease at the end of the Primary Period
• You can reclaim VAT on rentals

Sale & Leaseback

This facility releases equity in an operator’s bus and coach fleet to provide additional funds for the business. Coachlease buy the selected assets for an agreed sum and lease them back to the operator.

The benefits of sale and leaseback are:

• It provides an immediate cash injection to fund the business
• An affordable initial rental
• Fixed monthly rentals that help your cash flow
• All or part of the rentals allowable against tax
• An agreed percentage of the net sales proceeds are paid as a rebate if the vehicle is sold on behalf of Coachlease at the end of the Primary Period
• You can reclaim VAT on rentals