Whether you are looking for a company car, you're a small business owner running a few cars or a multinational corporate company with an extensive global fleet, Kia Business is here to support you.
Company car drivers often spend a lot of time behind the wheel, so it’s important that your car is comfortable, safe and equipped with everything you need to make your life as easy as possible. But of course, a company car also needs to make financial sense, and calculating tax and other running costs can sometimes seem a bit daunting. Fear not, though.
Our dedicated team of experts at the Premier Kia Business Centre are always on hand to answer your questions and help you find your perfect company car solution.
With Contract Hire you hire the vehicle for an agreed period of time (usually between 24 & 48 months) and pay a fixed rental based on the mileage you will do over the contract period. All payments are plus VAT of which 50% is recoverable. Up to 100% of the monthly rental can be offset against profits. Key benefits are a low deposit, lower monthly payments and fixed costs as maintenance can be included in the monthly payment.
SINCE 1995, leasing companies can reclaim the VAT on the purchase of the car, this means that you pay less per month because the interest charges are applied to the net of VAT price. For example a £20,000 car would be £17,021 without the VAT giving a substantial saving on interest charges. The depreciation of the car is based on the net of VAT cost price, immediately saving a significant amount of depreciation.
With lease purchase you purchase the car over a period of time, deferring an amount of the purchase cost by way of a balloon payment, usually equal to or lower than the expected sale proceed at the end of the contract. This allows for lower monthly payments than straight hire purchase. There is no VAT involved with a lease purchase agreement on a car. Key benefits of a lease purchase are lower deposit, no mileage restrictions, although you end up paying for the depreciation resulting from the mileage travelled. With lease purchase you have a means to own the vehicle.
Finance lease involves leasing the vehicle for an agreed period of time (usually between 24 & 48 months) and paying a fixed monthly payment until the end of the contract. Usually a lump sum final payment is set equivalent or lower than the expected sales proceeds of the vehicle (balloon payment). All payments are subject to VAT of which 50% can be reclaimed. Maintenance cannot be included with finance lease. Key benefits of finance lease are low deposits, no mileage restrictions (although you will end up paying for depreciation for the miles traveled). Finance lease offers the VAT advantages of contract hire. At the end of the contract the car must be sold to a third party, and the proceeds used to pay the final payment (balloon), if there is a shortfall then the customer would be liable to make this up, or if there is a surplus this is passed back to the customer.
DELIVERY THROUGHOUT THE UK BY OUR OWN FACTORY TRAINED STAFF, GIVING A PROPER HANDOVER AND EXPLANATION OF THE CAR.
Premier are well positioned to provide the best advice and assistance when looking to add or replace one of your fleet. Contact Stuart Collinson (email@example.com) on 01706 718029 or Neil Whittaker (firstname.lastname@example.org) 0161 343 2216 to arrange a meeting to explore all angles, to ensure you get the right car and the right package.
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