Whether you are a small start-up business or large established company, when it comes to choosing a vehicle finance plan the options seem endless.

And, as your business changes, so may your financing requirements, which often only adds to the complexity of choosing the right vehicle finance option for your business.

Because we understand that no two businesses are the same, Renault Business Finance offers a wide range of finance schemes and products to suit the specific needs of every type and size of business.

Renault

Finance Methods

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Contract Hire is an ideal product for companies who don’t want the financial risk of running their own car and van fleets, and who want to reduce the administrative load of buying, servicing and disposing of their company vehicles.

The benefits of Contract Hire

  • 4-year/100,000 miles vehicle warranty.
  • 12-year anti-corrosion vehicle warranty.
  • 4-year paint warranty.
  • 4 years Renault Roadside Assistance.
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What is business hire purchase?

A Business Hire Purchase is a simple way for your business to finance a vehicle over a flexible payment term, 1 to 5 years. Renault Finance will purchase the vehicle on your behalf. You then pay fixed instalments over the payment term. At the end of the agreement ownership transfers to you.

What are the main benefits?

  • Fixed payments allow you to mange your budget effectively
  • Flexible payment terms to suit your budget
  • No mileage restrictions
  • You will own the vehicle at the end of the agreement
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A typical Lease Hire customer :

  • Has the benefits of ownership without being the real owner
  • Can offset the whole rental amount against taxable income
  • Have no mileage restriction
  • Monthly rentals are fixed but theres flexibility through variable deposit options.

In addition you may wish to offset a proportion of the vehicle cost as a final payment. This is usually referred to as a balloon payment calculated at the outset of your agreement as a percentage of the vehicle price. This could reduce your monthly rentals and have a positive effect on your cashflow. Your balance sheet is likely to show the value of any vehicle on a Renault Lease Hire agreement as a fixed asset and any outstanding rentals as a liability. With low deposits, flexible repayment periods and fixed rental amounts you could control and improve your cashflow.

You have three options

1: Return the vehicle

We’ll forward your share of the balance of proceeds to you once anything owed to us, including any sell-on expenses, have been settled.

2: Sell the vehicle

Acting as our agent, you can sell the vehicle on our behalf and receive a share of the sale proceeds, assuming no balance is owed to us.

3: Keep the vehicle

If you want to continue to use the vehicles you can pay a nominal fee (usually one months rental) and carry on driving for the whole of the following year.

Tax relief and VAT

You may be able to claim tax relief on Renault Lease Hire rentals.

After deducting a realistic residual value, the depreciation is charged as a revenue expense against the profit and loss account. Interest is an allowable expense that can also be charged as a revenue expense and spread over the term of the agreement. As Renault Business Finance can recover the VAT on the purchase of all leased vehicles, your rental is calculated using the on-the-road (OTR) price exclusive of VAT. You could claim up to 50% of the VAT payable on the rental on cars where there is both private and business use and up to100% on commercial vehicles and cars where there is no private use. Please note, all references to taxation and VAT are subject to confirmation by your professional advisor.

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Lease Purchase is a Hire Purchase agreement, offering you the option to own the vehicle at the end of the agreement.

It offers fixed repayments and fixed interest payable on the purchase price less the deposit. In addition, you have the ability to defer a proportion of the vehicles cost to a final balloon payment at the end of the agreement. This will result in lower monthly payments than Hire Purchase and could therefore improve your cash flow.

The benefits of Lease Purchase are:

  • Simple and quick to put in place
  • You retain ownership of the vehicle
  • You are not tied to mileage restrictions
  • You have fixed repayments and fixed interest to control your costs
  • Same tax benefits as Hire Purchase (see Hire Purchase section for more details)
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