Finance Options

Once you have decided on the right vehicle, choosing how best to finance that vehicle can be extremely difficult. At Sterling Vehicles we take the time to help our Customers decide which of the various finance options available best suits their individual requirements.

Business Contract Hire in brief:

The most common type of lease in the UK, basically a long term rental agreement.

  • All makes and model of vehicle
  • Road Fund Licence included for contract duration
  • No risk of depreciation
  • VAT registered Companies can claim 50% on the finance element for cars, 100% Commercials subject to conditions.
  • Optional maintenance packages available
  • Fixed monthly rental assists with budget planning
  • Off balance sheet
  • No depreciation or disposal to worry about
  • If you exceed your agreed mileage, excess charges apply
  • You do not own the vehicle
  • The vehicle must be returned in a condition to comply with the relevant ‘Fair wear and tear’ policy or charges may apply

Personal Contract Hire in brief:

  • Fixed monthly payments
  • Low initial payment available
  • Road Fund Licence, warranty and in mosyt cases breakdown cover are included for duration
  • Hassle free motoring, hand car back at the end of contract and start again
  • Customers can sometimes enjoy access to a more ‘upmarket’ vehicle due to slower depreciation
  • Optional maintenance packages available
  • Free Delivery and collection for most UK Mainland postcodes
  • Leasing Buying Power. Customers benefit from the high discounts given to the leasing companies whom achieve this due to the high number of vehicles purchased.
  • If you exceed your agreed mileage, excess charges apply
  • You do not own the vehicle
  • The vehicle must be returned in a condition to comply with the relevant ‘Fair wear and tear’ policy or charges may apply
  • VAT rate changes can affect the monthly price

Finance Lease in brief:

  • Low initial payment
  • Option of Balloon payment
  • Fixed cost motoring
  • Fixed Interest Rates on some contracts
  • VAT recoverable on rentals (as with Contract Hire)
  • Vehicles must be sold to a third party at agreement end
  • Hirer takes on operating risk and administration including road fund licence

Lease Purchase in brief:

  • Ideal for Companies wanting to retain the vehicle as an asset
  • Low initial payment frees up finance
  • Typically cheaper than Hire Purchase payments
  • Value can be written down against taxable profits
  • Upon payment of the balloon the vehicle is yours
  • Sales
  • Road fund licence not included
  • Balloon payment must be made at the end of the contract. In some cases this can be higher than the residual value
  • VAT can only be reclaimed if vehicle is used solely for business