Finance at the Van Centre, Eglinton

At Donnelly & Taggart Van Centre Eglinton we offer a wide range of fleet vehicles tailored to your needs.

With flexible finance available, from Contract Hire to Hire Purchase, we trust you will be impressed.

When it comes to commercial vehicles we have the van to suit your business, from the compact Peugeot Partner Van to the versatile and generous Renault Trafic, all to help you expand your business throughout Northern Ireland and beyond.

Why choose Business Contract Hire?

Contract Hire is the perfect product for you if you want fixed cost motoring and are confident about the mileage and condition of your vehicle over a set period of time. It is an easy and cost effective way to fund vehicles, which would enable you to control one of your biggest expenses. Contract Hire is the most popular type of vehicle leasing. Under this kind of agreement, the vehicle is hired for a set period of time and pre-determined mileage, at fixed monthly rentals. You never own the vehicle, so at the end of the contract the finance company will collect it and dispose of it. It is possible to include a maintenance package in the monthly rentals. Monthly rentals will depend on the value of the vehicle, length of the contract, and the agreed mileage.

Advantages:

  • Low deposit typically equivalent to 3 monthly rentals
  • Choice of contract period from 24 to 60 months
  • Hassle free - option to add servicing and maintenance, taking away all the hassle of running a vehicle
  • Fixed cost motoring
  • Steady cash flow
  • Free up capital - Get a new vehicle without the up-front costs, freeing up money for you to invest elsewhere in your business
  • No risk - The risk of vehicle depreciation is eliminated. At the end of the contract, the vehicle is simply handed back without worrying about how much it might be worth
  • Less administration - The finance company deals with all the buying, maintenance and selling issues
  • Tax benefits - Reclaim up to 100% of the VAT on all maintenance charges, the lease rental the fees and finance element for commercial vehicles
  • Rentals are up to 100% allowable against corporation tax
  • Road Fund Licence is provided for the full term of the contract
  • The vehicle appears off 'Balance Sheet' as it is owned by the leasing company
  • Maintenance can be included

Disadvantages

  • You will need to estimate the time and mileage for the use of the vehicle
  • No option to purchase the vehicle
  • The cost to terminate the contract early can be expensive
  • If you go over their agreed mileage allowance, excess mileage will be charged for each mile over that is stated in the contract
  • You must look after the vehicles and return in a well maintained condition, if not you will be charged for any damage over and above as stated in the 'Fair Wear and Tear Guide'

This would suit customers who:

Want a more expensive vehicle than their budget would normally allow i.e. A new vehicle instead of a used one.

Know exactly how long they want to keep the vehicle and a good idea of the mileage they will be doing.

Want to avoid the risk of depreciation and maintenance costs.

Want fixed cost, stress free motoring.

Are not worried about owning a vehicle.

Are not VAT registered because VAT is paid on rentals rather than all upfront.

Why choose Hire Purchase?

With a Hire Purchase agreement the vehicle is financed for a fixed monthly payment with the transfer of ownership at the end of agreement. The agreement requires a deposit usually the VAT with the option of a balloon payment at the end.

Advantages

  • Ownership at the end of the agreement
  • Choice of finance from 12 to 60 months
  • Capital cost of the van can be written-down (unless using the Annual Investment Allowance)
  • Purchase cost may be Corporation Tax deductible through Capital Allowances
  • Interest elements of monthly payments may be Corporation Tax deductible
  • Can benefit from higher residual values
  • Fixed interest rate
  • Effective budgeting with the final payment facility. Ownership of the vehicle can be acquired once the final payment has been paid in full
  • Monthly payments are not subject to VAT
  • The vehicle is registered in the your name, care of the finance company

Disadvantages

  • Outstanding payments appear as a liability on your balance sheet
  • Not VAT efficient
  • Vehicle appears on your balance sheet
  • You are liable for the full value of the vehicle and have no option to return it at the end of the contract
  • Should the agreement be for an LCV (Light Commercial Vehicle) then the full amount for the VAT on the purchase must be paid upfront

This would suit customers who:

Want ownership of the vehicle at the end of the agreement

Can pay all of the VAT in relation to the vehicle up front