Financing Your Car

Funding

Whatever your business needs, we can assess what the most suitable Finance arrangements would be for your business using our 'Fleet Choice' software developed by Deloitte & Touche. We can then offer a range of suitable funding options:

Business Contract Hire

Allows you to run your vehicles for a fixed monthly cost. By using Contract Hire the cost of your vehicles is removed from the balance sheet, freeing up valuable capital which can be utilised elsewhere.

Features:

• Release of Capital
• Off Balance Sheet
• Management of Fleet
• Risk Free
• VAT Efficient Purchasing
• Economies of Scale

Benefits:

• Enables investment in business or reduction of borrowing
• Improved accountancy ratio e.g. return on assets
• Releases Management and Administrative resource
• Relief from Financial Risk of Residual Value
• Savings included in Rental Stream
• Manufacturers discounts and VRB's reflected in cost

Personal Contract Hire

If you provide your drivers with a cash allowance instead of a company car, Personal Contract Hire can help them to reduce the risks normally associated with car ownership such as depreciation, disposal and maintenance. The forthcoming changes to company car benefits from April 2002 have made it all the more important for both company car drivers and indeed their employees to become more aware of personal taxation issues. As the implications of the move away from mileage discounts to C02 emissions are more clearly understood the issue is even higher on the agenda.

Personal Contract Purchase

Quite simply a Hire purchase with a balloon. The total price of the vehicle (inlcuding VAT) has interest added to it. The finance company decide the balloon amount as a figure they believe the vehicle will be worth at the end of the agreement. They call it either a "Minimum end value", "Guaranteed Minimum End value" or "GMEV". Your payments are based on the Total amount repayable, less the balloon, spread over the term. At the end of the contract you can either hand the car back to the finance company to dispose of and they pay the balloon off on your behalf, sell the vehicle yourself and pay the balloon, or just pay the balloon to obtain ownership.

Finance Lease

Finance Leasing allows you to spread the cost of your vehicle over a period of time. The simplest form of Leasing, a Finance Lease enables you to drive your chosen vehicle/s with minimum capital outlay whilst taking advantage of showing your vehicle as an asset on the balance sheet.

Vehicle Choice

We can offer an unrestricted choice of all makes and models of cars and Light Commercials (up to 3.5 tonnes) We can offer `Best Practice' guidance on the appropriate vehicles for your fleet, taking into account factors such as whole life costs, driver taxation, even fuel emissions performance.

Disclaimer.

All prices detailed within this website are believed correct, however all prices are subject to revision at any time due to changes in cost of lending and Manufacturers pricing. To ensure quotation validity, please call 0845 00 66 566 and ask for a full written quotation.E&OE

Hidden Charges

Skyfleet Ltd do not believe in "Hidden Charges". Some Brokers charge for Documents, Delivery, Contract Exit fee's ,Credit Checks, Fuel and somethimes administration of the deal or proposal. These charges are not always declared even up to the point of delivery!

The only charge Skyfleet makes in addition to your regular rental is a fully refundable document fee of £299 + VAT. This is payable in addition to the initial rental. (The document fee is fully refundable if, at the end of this contract, a new contract is taken out for a new vehicle, through Skyfleet Ltd).

 

>> Do you need more help on deciding whether to lease or purchase your next car? Click here for more information

Complaints Handling Procedure

It is the aim of Skyfleet Limited and its subsidiaries to provide a very high standard of service to every client. It is important to us that all complaints are resolved as quickly as possible and to the complete satisfaction of our clients.

This policy explains how we will deal with any complaints. It also tells you what you can do if you think your complaint has not been resolved to your satisfaction.

If you have a complaint

If you have a complaint about any aspect of our service then we would like to hear from you. You can contact us by telephone or in writing and your complaint will be resolved by the appropriate person in the shortest possible time.

To help us to investigate and resolve your concerns as quickly as possible, you should in the first instance contact the department with which you have been dealing. To help us resolve your problem you should provide the following information:

• your full name and contact information
• full details of your complaint
• your agreement details
• details of what you would like us to do to put things right
• photocopies of any relevant paperwork

We will try to resolve your complaint immediately, however, sometimes this may not be possible. In the unlikely event that we are not able to resolve your complaint by the end of the next business day, we will keep you informed of the progress of our investigations and provide our final response in writing providing our findings and the action to then take.

If you have a regulated consumer contract with us and are not satisfied with our final response, you may be eligible to refer the matter to the Financial Ombudsman Service. You must do this within six months of our final response.

Why are people now deciding to lease cars rather than purchase?

Every one who drives a car incurs a cost. The cost can be broken down to a monthly figure. Even if you drive a low purchase price, second hand car, the chances are you are paying £2000 a year in depreciation / servicing / Mot's etc. etc. and are driving a car that is second hand. The monthly Leasing costs can be almost as cheap for a brand new car and that is why people are leasing. A new car with Minimum deposit or initial payment, Minimum monthly payments, No risk, using someone elses money, it speaks for itself!

Company Car Schemes

• No capital investment required for vehicles will depreciate over time
• Allows the business to concentrate on purchasing assets that are more likely to increase in value and preserve cashflow
• No change to banking credit status

Cash Allowance

• No Company car taxation
• Pay standard tax on allowance
• Choose any car (you can afford)
• Typically you would get a loan from your bank to pay for car, and the cash allowance you receive from your company will contribute towards the cost

So what's different with Car Leasing (aka Contract Hire)?

Over 80% of businesses today fund vehicles by using a range of leasing schemes. Leasing enables them to effectively use the asset rather than own it.

Benefits to the business are

• No capital investment required for vehicles will depreciate over time
• Allows the business to concentrate on purchasing assets that are more likely to increase in value and preserve cashflow
• No change to banking credit status.

As well as the benefits to business, private individuals use car leasing finance products for the same reasons and allows them to

• Acquire brand new cars every two or three years.
• Stop worrying about the car depreciating in value. The individual doesn't own the car the lease company (e.g. Skyfleet) does.
• Gain access to prestige models that would normally be too expensive with other forms of finance.
• Avoid the need to haggle in the used car market.
• Make lower monthly payments that can also cover maintenance and servicing.

 

Car leasing for Private individuals

Personal Contract Hire (PCH)

• A monthly fee is payable to the leasing company to use the vehicle over a fixed period
• The vehicle belongs to the leasing company throughout the term (1-5 years)
• A deposit usually equal to three months payments is payable on the the first payment
• At the end of the contract the vehicle is returned to the leasing company

Please note: The individual is often given the option to purchase the vehicle at the end of the term.

Personal Contract Purchase (PCP)

PCP is similar to PCH with the only difference being that the individual is always given the opportunity to purchase the vehicle at the end of the contract. This will be at a predetermined balloon payment rate.

At end of contract the individual hirer has three options

1. Purchase the vehicle for the predetermined balloon figure
2. Return the vehicle at no additional cost
3. Continue to use the same vehicle with ongoing repayments being calculated on a new residual value.

Lease Purchase (LP)

A lease purchase agreement is similar in many ways to a normal hire purchase with the only difference being that payments are lower due to deferring part of the amount owed to the end of the agreement as a balloon payment.

• The balloon payment must be paid at the end of the term
• There is no obligation for the supplier to take the vehicle back at the end of the agreement
• The final balloon payment can be made from the proceeds of the sale of the vehicle.

 

Is Car Leasing for you?

No doubt there will be car buyers/enthusiasts who will always prefer to purchase and own their vehicles through traditional financing channels such as bank loans etc. However, since the introduction of a varied range of car leasing finance options, individuals now have greater flexibililty and a more business approach to the purchase of assets. At the end of the day all cars will eventually end up in a scrapyard regardless of how they have been purchased, so be smarter with your money the next time you renew your car.... and give us call.

>> Click here for information about Skyfleet's car leasing and contract hire finance options