The client agrees to purchase the vehicle via a series of monthly payments comprising of a proportion of capital and interest. A final Guaranteed balloon / residual payment is inclusive which is pre stated on the contract at the point of sale which is equal to or less than the predicted future value. For tax purposes ownership of the vehicle is transferred to the client on the date the contract is signed. At the end of the agreement if the vehicle is worth less than the pre agreed balloon / residual value, the client can hand the vehicle back to the finance company without penalty although excess mileage and condition penalties may be applicable.
The vehicle is classed as an asset of the company and the client gains access to the writing down allowances, a balancing charge or allowance is calculated upon disposal effecting a full, if delayed depreciation for tax purpose. No Value Added Tax is applicable to this finance plan.
Summary: A finance product for those who wish to own their vehicles but avoid the risk of financial loss upon disposal.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 01562 549 725
MTCR Marketing Ltd trading as Hills Contracts
MTCR Marketing Ltd trading as Hills Contracts, are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 676146
Registered in England & Wales with company number : 1734580 | Data Protection No : Z2372694 | VAT No : 899898891
Registered Office : MTCR Marketing Limited T/A Hills Contracts, Worcester Road, Kidderminster, DY10 1JB
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