NISSAN PREFERENCES (PCP)
Nissan Preferences is our Personal Contract Purchase product that stands out from the crowd in terms of the choice and flexibility
NISSAN PREFERENCES EXPLAINED
HOW NISSAN PRFERENCES WORKS
- You let us know how much deposit you would like to pay.
- We will calculate your monthly payment based on the maximum annual mileage to suit your needs.
- We will calculate your Optional Final Payment depending on your driving requirements.
WHAT HAPPENS AT THE END OF THE AGREEMENT?
You will get a choice of three options when your Nissan Preferences agreement comes to an end.
Perference One - Drive away a new Nissan
If the vehicle is worth more than the Optional Final Payment amount, you could part exchange your vehicle by putting the difference towards a deposit on a new Nissan.
Preference Two - Return your Nissan
Simply return your Nissan in good condition, within the agreed mileage limits, and pay nothing.
Preference Three - Keep your Nissan
Pay the Optional Final Payment and be transferred ownership of the vehicle.
BENEFITS OF NISSAN PREFERENCES
- The deposit is negotiable.
- Fixed monthly payments.
- Option to change your Nissan every 2 to 3 years.
- Flexible end of agreement options.
HIRE PURCHASE
Hire Purchase is the classical way to finance your vehicle. It involves paying off the cost of the vehicle with interest on a monthly basis. Despite being a great way to personally finance your vehicle, Hire Purchase is also a popular finance choice for businesses.
HOW HIRE PURCHASE WORKS
- You let us know how much deposit you would like to pay.
- From this we calculate, including interest, the monthly payments for the duration of the contract.
- At the end of the agreement, after all payments have been made (including the Option to Purchase Fee), ownership of the vehicle is transferred to you.
BENEFITS OF HIRE PURCHASE
- The interest rate charged on the finance will remain unaffected by any future changes in interest rates.
- The initial payment is flexible.
- Fixed monthly payments are not subject to VAT.
- Taxation benefit from writing down allowance.
- No mileage restrictions.
CONTRACT HIRE
Contract Hire is the most common form of vehicle leasing and offers many benefits to businesses. It allows a company to take on cars or vans for a set period of time and pay a fixed monthly rental. The company taking out the Contract Hire agreement does not own the vehicle, reducing the financial risk to the business and easing the administrative process of buying, servicing and disposing of vehicles.
HOW CONTRACT HIRE WORKS
- You pay the advanced rental ranging from 3 to 12 months upfront.
- Fixed monthly rental for the duration of your contract.
- At the end of your agreement, you simply return the vehicle back to us.*
- *Subject to any excess mileage charges and damages which exceeds fair wear and tear.
BENEFITS OF CONTRACT HIRE FOR YOUR BUSINESS
- Road Fund licence included.
- Flexibility to increase your contract term and mileage.
- Optional servicing, maintenance and tyre options brings all running costs into one package.
- Reduced VAT paid by business, as monthly vehicle payments can be offset against taxable profits.
- Vehicles on Contract Hire are classified as 'off balance sheet' and therefore has accounting benefits by improving the financial ratios for the business.
- VAT registered businesses are able to claim 100% of the VAT back if the vehicle is used exclusively for business.
- If vehicle used privately, 50% of the VAT can be reclaimed on the finance of the rental.
LEASE PURCHASE
Lease purchase is a flexible finance option similar to Hire purchase, however allows for an optional deferred sum ('balloon') to be paid at the end of the agreement. This deferred sum can reduce your monthly payment or reduce your contract length.
HOW LEASE PURCHASE WORKS
- You pay an initial deposit followed by a fixed number of monthly payments over an agreed contract period.
- Monthly payments can be reduced by making a 'balloon' payment at the end of the agreement.
- The amount of the balloon payment will be agreed on at the beginning of the contract.
BENEFITS OF LEASE PURCHASE FOR YOUR BUSINESS
- Fixed monthly payments for ease of budgeting.
- Monthly payments are not subject to VAT.
- Option to include deferred sum (also known as the 'final balloon') allows flexibility whilst keeping monthly payment low.
- There are no mileage restrictions, as you retain ownership of the vehicle.
- Taxation benefit from writing down allowance.
- LCV's acquired on Lease Purchase should be eligible for the Annual Investment Allowance.
- LCV's acquired on Lease Purchase are required to pay VAT up front as a lump sum.
FINANCE LEASE
Finance Lease is a hire product which gives businesses the flexible option of retaining the vehicle (for a small annual fee) at the end of the agreement. However, the customer may also sell the vehicle to a third party once all the rental payments have been made. The customer retains 100% of the sales proceeds (paid as a rebate of rentals).
HOW DOES FINANCE LEASE WORK?
- You pay an initial deposit followed by a fixed number of monthly rentals over an agreed contract period.
- There are two options at the end of term. You can choose a further 'secondary' lease of hire. Or you can dispose the vehicle on our behalf and keep 100% of the proceeds (paid as rebate of rentals). Any balloon taken will need to be settled at the end of the primary period.
BENEFITS OF FINANCE LEASE FOR YOUR BUSINESS
- Fixed monthly payments for ease of budgeting
- Lump sum or number of rentals as advance payment
- Option to extend agreement into a 'secondary' period for a nominal annual fee (peppercorn rental)
- Option to include a deferred sum/final 'balloon' payment to keep monthly costs low
- Tax relief benefits the same as Contract Hire
- 50% VAT usually reclaimable of cars
- 100% VAT usually reclaimable on LCV's
- Reduced VAT paid by business, as monthly vehicle payments can be offset against taxable profits
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