Car FinanceFor over 20 years, XL Business Finance has been providing vehicle finance including cars and commercial vehicles to businesses and consumers, so we have the specialist knowledge and experience to help you with your car purchase. We are independent, which means we have no ties to any manufacturer or distributor. This gives you total freedom when it comes to choosing the car you want to buy. We offer car finance between £2,500 and £1m+ on both new and used cars.
There is a plethora of finance options available for business users and consumers alike. Which option is most suitable for you depends on your individual circumstances and if in doubt speak with your accountant or financial advisor.
Funding is usually available up to a max of five years however leisure vehicles (motor homes, caravans, horse boxes) and classic cars can be funded up to a maximum of 10 years.
These are the available options. Unless stated otherwise, options are available to both business and individuals.
The full capital value of the vehicle is funded over the term of agreement. On making the final payment, plus an option to purchase fee of circa 25- 50%, the title passes to the end user.
As with hire purchase however an agreed capital amount (the balloon) is offset to the end of the agreement having the effect of reducing the monthly payment. Your anticipated mileage will be used to calculate the balloon payment however there are no mileage restrictions during the term of the agreement. Therefore, the end user must take the risk or reward of the value of the vehicle and will be responsible for paying the balloon payment. Certain finance companies will allow you to refinance the balloon payment.
Only suitable for vat qualifying cars, the finance co will claim the vat back on the purchase price of the vehicle. Monthly payments to the finance co will be plus vat and in certain situations a business user will be able to claim some or all the vat back. HMRC guidelines does not allow a finance co to pass title directly to the end user so will pass tittle to a nominated third party for a nominal amount. If you decide to sell the vehicle the finance co will allow you to keep 90-95% of the sale proceeds.
As with finance lease however an agreed capital amount (plus vat) is offset to the end of the agreement having the effect of reducing the monthly payment. The hirer will take the risk or reward of the value of the vehicle. Certain finance companies will allow you to refinance the balloon payment.
A highly competitive form of car finance typically used by businesses to run cars without having any of the risk of full ownership. Monthly costs will vary depending on annual mileage and optional maintenance packages. At the end of the agreement the vehicle must be returned to contract hie company in good condition. Beware many contract hire companies make their margin on onerous end of hire conditions. There is no option to purchase the vehicle from the finance co.
A product suitable for consumers who wish to reduce their monthly payments. A balloon payment is calculated depending on annual mileage and optional maintenance packages. However, the finance co will provide a guaranteed future value for vehicle enabling you to return the vehicle at the end of the agreement if it is worth less than the outstanding balloon amount. Alternatively, a PCP agreement allows the user to purchase the vehicle by settling the outstanding balloon payment or to sell it and pocket the difference.
For further information on all aspects of vehicle finance, please do not hesitate to call or contact us today.
The Department for Science, Innovation and Technology (DSIT) recently announced a £7.4 million pilot scheme to subsidise the cost of AI skills training for small and medium-sized enterprises (SMEs) in the Professional
You can spread the cost of your HMRC Self-Assessment tax bill, Corporation Tax or VAT bills using a easy to arrange solution that will ease any pressure on your cashflow.
Hire Purchase
Finance Lease