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Niche Concept Car Finance

 
 

There are many types of car finance options available.
The choice of which one is right for you depends upon a wide variety of factors. In the text below, we endeavour to explain some of the key differences between the main types of funding available from Niche.

Please remember the below information is for guidance purposes only and we'll be happy to take you through things in more detail, so please don't hesitate to contact one of our advisors should you have any questions.

 
 

Business Contract Hire (BCH)

A popular choice for VAT registered companies that want minimum outlay and maximum control of costs, especially when maintenance and relief costs can be included.

One regular payment covers all risks including cost of depreciation and disposal for a pre-agreed period, 2 to 4 years and an agreed annual mileage from 5,000 to 40,000 miles per annum. Road fund licence is included. Full maintenance
package is optional and can be tailored to include full servicing costs, Replacement tyres and courtesy vehicle if required.

At the end of the contract term you hand the car back to the finance company, no need to sell the
vehicle privately or worry about its re - sale value.


*KEY BENEFITS*

- Additional credit line
- Vat - 50% can be reclaimed on cars & 100% reclaimed on commercials
- 100% claimable on the maintenance element of the vehicle should you choose this
- Not recorded on the Balance sheet, but recorded on the notes to the audited accounts
- Fixed motoring with maintenance optional
- No worries about disposal or depreciation
- Hire rental tax allowances apply
- Depending on the value of the vehicle a sufficient amount can be offset against tax & profits.

 

 
 


Personal Contract Hire
(PCH)

Personal Contract Hire delivers all the benefits of a company car to the private individual. Personal Contract hire gives the user a fixed monthly rental for a fixed contract term.

One regular payment covers all risks including cost of depreciation and disposal for a pre-agreed period, 2 to 4 years and an agreed annual mileage from 5,000 to 40,000 miles per annum. Road fund licence is included. Full maintenance
package is optional and can be tailored to include full servicing costs, Replacement tyres and courtesy vehicle if required.

At the end of the contract term you hand the car back to the finance company, no need to sell the vehicle privately or worry about its re - sale value.

*KEY BENEFITS*

- Low initial outlay
- Flexible deposit
- Choice of rental period
- No final payment
- Fixed monthly rentals
- Optional maintenance contract
- No disposal problems
- Optional relief vehicle
- Road fund licence included for the full contract length
- No residual risk.

 

 

Personal Contract Purchase (PCP)

A variation of lease purchase, but the “Balloon” deferred payment is guaranteed (GFV - Guaranteed Future Value) and you have the option to own at the end of the contract or return the vehicle.

*KEY BENEFITS*

- Low deposit
- Fixed monthly payments
- Option to own the vehicle
- GFV - Guaranteed Future Value payment leads to lower monthly repayments
- More vehicles at your disposal compared to Hire Purchase repayments
- No disposal problems or “balloon” payment risk
- Excellent option for individuals who have opted out of a company car
- Option to re-finance GFV payment at the end of the contract.

 

 

Balance Payments (BP)

A Balanced Payment Plan offers the benefits of a fixed monthly payment, however unlike traditional Hire Purchase, where the interest is fixed, Balanced Payments tracks the changes in the finance house base rate, LIBOR or bank base, depending
on the agreement. As rates fall or rise over the period of the contract, so does the interest charges you pay.
How does it work? You pay an initial deposit and pay the balance in fixed monthly instalments over an agreed term (12-60 months). At the end of the term any variation of interest is reconciled and will be settled as either a credit to you, or a charge.

This funding option is ideal for high net worth individuals wanting to fund a High end prestige or Super car.

*KEY BENEFITS*

- Flexible Low Deposit
- Fixed monthly payments
- VAT Free Optional Balloon Payments
- Potential savings if interest rates fall.

 


Lease Purchase
(LP)

For Personal or non-VAT registered companies who want eventual ownership of the vehicle, ownership is acquired when all the payments have been made.

Lease purchase is a form of Hire purchase, and part of the capital cost can be deferred until the end of the contract. The “Balloon” deferred Payment should equate to the anticipated re-sale of the vehicle when the contract finishes.

*KEY BENEFITS*

- Fixed Monthly Payments
- Outright ownership on payment of “Balloon” deferred payment
- “Balloon” payment reduces your monthly rentals
- Greater flexibility at the end of the contract.

 
 

Hire Purchase (HP)

The oldest and most traditional method of acquiring a vehicle, other than outright purchase, where you repay the capital cost of the vehicle plus interest over a set period.

*KEY BENEFITS*

-
Fixed monthly repayments
-
Fixed interest rate
-
Keeps savings intact
-
Outright ownership
-
Consumer Credit Act protection

 
 

Out Right Purchase (ORP)

Simply purchase the vehicle and have it delivered to your door.

*KEY BENEFITS*

-
Allows you to benefit from the great discounts we can obtain on your behalf

 
 

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