Finance options for your business available from Donnelly Group

• Contract Hire
• Hire Purchase
• Finance Lease
• Lease Purchase
• Personal Contract Hire
• Sale Lease Back

Contract Hire:

Contract Hire has become the most prominent form of vehicle funding in the past few years for many good reasons and it is much more than simply a form of funding.What is Contract Hire?Contract Hire is a form of operating lease where a vehicle is supplied over a fixed period for a fixed monthly rental. Ownership of the vehicle is retained by the Leasing Company with the vehicle hired to the customer for a fixed period and monthly rental. In a nut shell Contract Hire provides a full operational solution to the acquisition, maintenance and disposal of company vehiclesYou monthly charge is based upon a number of factors, the cost of the vehicle, the contract period and the anticipated resale value (End Value). It is also allows for contract mileage and any additional services you may require.

Key Benefits

    * Minimal capital expenditure, improving cash flow.
    * Release of capital.
    * Contract Hire is treated as an Operating Lease and is off balance sheet funding.
    * Low initial outlay.
    * Fixed monthly costs, allowing improved budgeting.
    * Removes Risks of Disposal and High Depreciation
    * Insulates you from Escalating Maintenance costs.
    * VAT is recoverable on rentals.
    * Single source for fleet acquisition, administration and disposal. Utilises the Donnelly Group buying power.

Contract Hire as a method of finance can be useful for companies and small business wanting to free up capital and improve cash flow by implementing fixed cost fleet operation.

Hire Purchase

Hire Purchase allows for the purchase and possession of a vehicle prior to completed payment, it is a simple repayment facility with ownership passing from the finance/Leasing company to the hirer upon final payment.
With Hire Purchase your monthly payment is based upon a number of factors, the amount of deposit paid, the period of the contract and the sale price of the vehicle you wish to purchase.

A Hire Purchase facility is secured against the vehicle you purchase; as such you don’t legally own the vehicle until the final payment has been made.
Important Points:

    * Under a hire purchase (HP) agreement, you pay an initial deposit followed by monthly payments over an agreed period.
    * Your contract is with a finance company who will own the goods until the final payment is made.
    * The finance company can take the goods back if you don't keep up your repayments

Finance Lease

Car Finance Lease offers customers the predictability of fixed monthly rentals with the flexibility to benefit from the sales proceeds and terminate the contract early if they wish.
There are two structures available in Finance Lease:

   1. A fixed contract where the capital and finance charges are paid over the agreement.
   2. A Balloon payment, rentals are paid over a fixed term with a final lump sum at the end of the agreement.

At the beginning of the agreement monthly payments and interest rates are fixed for the life of the agreement, subject to vehicle mileage. With a Finance Lease you have the added option at the end of the agreement to continue to lease the vehicle on a “Peppercorn Rental”.
Key Benefits:

    * Low initial outlaw
    * Fixed monthly costs.
    * Added option of a Balloon Payment to lower monthly costs.
    * Maintenance costs can be included.
    * Tax Advantages – (Special rules apply to cars)
    * The vehicle

Lease Purchase

Lease Purchase is essentially a Hire Purchase facility with the availability of a balloon payment; in fact it is not a lease at all. Like Hire Purchase the ownership of the vehicle is retained by the Finance/Leasing Company and unlike a Lease you have a contractual agreement to buy the vehicle.
Lease Purchase deals are flexible in that they offer a number of ways to buy the vehicle at the end of the lease, and can be settled at any point in the agreement.

Key Benefits:

    * Second Line of credit.
    * Low initial deposit.
    * Lower rentals due to Balloon Payment.
    * Customer benefits from writing down allowances.
    * Payments can be structured to fit with your cash flow.

Personal Contract Hire

Personal Contract Hire is tailored to the individual and is both a cost effective and easy way to manage the purchase and maintenance of your vehicle. As a finance package it is particularly attractive to individuals who receive a cash alternative to a company car.
Ownership of the vehicle is retained by the Leasing Company with the vehicle hired to the customer for a fixed period and monthly rental.

You monthly charge is based upon a number of factors, the cost of the vehicle, the contract period and the anticipated resale value (End Value). It is also allows for contract mileage and any additional services you may require.

Key Benefits:

    * Low initial outlay.
    * Fixed monthly costs, allowing improved budgeting.
    * Removes Risks of Disposal and High Depreciation
    * Insulates you from Escalating Maintenance costs.
    * Single source for fleet acquisition, administration and disposal.
    * Utilises the Donnelly Group buying power.

Our dedicated account managers can assist with your vehicle choice, tailored to your monthly budget and personal tax savings, mileage allowance and any additional services you may require.

Sale & Lease Back

A sale and leaseback allows a company to raise money from the sale of assets while retaining use of them, essentially releasing capital tied up in your vehicles by transferring to Contract Hire or Leasing agreement.

In April 2008, at following a European tender Donnelly Finance & Leasing Limited became the first NI company to purchase a customers entire fleet of more than 600 vehicles. A fleet comprising of small commercial vehicles up to 20 ton specialist vehicles were updated, maintained and leased back to them.
The net effect to the customer was not only one of a complete and transparent service but also a 15% increase in efficiency as vehicle ‘downtime’ was dramatically reduced