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With over 15 years experience in the vehicle leasing market, Vantage Leasing Solutions Ltd is a leading provider of tailored vehicle funding options for both business fleets and private individuals throughout the UK.

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Leasing information

Contract Hire and Personal Contract Hire

This is a convenient and hassle-free hire agreement, whereby the user simply pays a fixed monthly rental for the use of the vehicle over a pre-determined term and mileage. There's no risk of unpredictable residual values as at the end of the agreement, the vehicle is returned to the funder for disposal. It's popular with business users as it's both VAT and tax efficient and with private individuals who want fixed cost motoring.

How it works

The Contract Hire company calculates the residual value for the vehicle based on the age, length of hire and the mileage it will be covering. They charge the user a monthly rental to cover depreciation over that period plus a funding charge, along with any add-on services required such as maintenance. The user has no risk in ownership and has a predictable monthly cost. The user effectively pays just for the use of the vehicle.

Risk

The funder assumes the risk of the residual value of the vehicle.

Advantages

Low initial outlay
The costs are predictable and risk-free
The user has no risk of depreciation and disposal
The vehicle is off balance sheet
The rentals can be offset against the taxable profit
The administration and management burden can be transferred to a third party
Maintenance of the vehicle can be included as an option
If the vehicle is used solely for business (i.e. pool car, commercial vehicle, daily rental) the user can reclaim 100% of the VAT on the rental. If it used for both business and pleasure, the user can reclaim 50% of the VAT on the finance element of the rental and 100% of the VAT on the maintenance element if included
The contract generally includes road fund licence at the current rate for the complete term of the agreement

Finance Lease

This is a VAT beneficial hire agreement for business users who want to handle the admin of their vehicles and have the asset shown on their balance sheet. The hirer can choose to pay the entire cost of the vehicle plus an interest cost over the lease period and receive a percentage of the proceeds following the sale of the vehicle or pay lower monthly rentals with a final balloon payment based on the anticipated resale value of the vehicle.

Contract Purchase and Personal Contract Purchase

This is a purchase agreement with a difference in that it offers low fixed monthly payments with the bonus that the user has no risk of a potential fall in the residual value of the vehicle. This is due to a balloon placed at the end of the agreement, which is guaranteed by the finance house and is determined at the start of the contract based on the term and mileage that you choose. At the end of the agreement, you can either pay the final amount and keep the vehicle or sell it/trade it in and use the equity towards your next vehicle or simply hand it back to the finance company. It's popular with companies who aren't VAT registered and private individuals who want fixed cost motoring with flexibility.

Hire Purchase/Lease Purchase

This is a purchase agreement for a business or an individual who wants eventual ownership of the vehicle which is acquired 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 "balloon" payment at the end of the agreement, the anticipated value of the vehicle.