Car Leasing, Van Leasing & Contract Hire from IVL Established 1987 »

Business Leasing

Business Leasing

Contract Hire

The most popular method of business leasing to fund company cars
    • Contract hire is effectively long term rental min 24 months to a maximum of 60 month
    • Mileage is the key data to setting up the Contracts
    • Minimum  8000 miles per annum to a maximum of 45000 miles per annum or 120000 total contract mileage  
    • Massive corporate buying and selling power
    • Whole life costs that are guaranteed  
    • Considerable tax and VAT benefits too.
    • Off balance sheet and owned by the leasing company  gaining  additional tax advantage
    • Driver should look at  two key factors: The full list price and the Co2 rating to keep personal tax to a minimum
    • VAT is recoverable on the rentals, 50%  in most cases but it is worth checking as usage can vary the amount of VAT that is recoverable .

Finance Lease 

The popular funding option for commercial vehicles or companies that do not want to be tied to a mileage a parameter
      • Again the vehicle is owned by the leasing company so you can take advantage of the buying power.
      • Monthly rentals can be lowered further through the introduction of a balloon rental at the end of the contract.
      • Balloon rentals  can be a set at a value equivalent to the forecasted residual value  or reduced in line with anticipated wear and tear 
      • Once the lease is fully paid up the customer can sell the vehicle on the leasing company’s behalf and retain 98% of the sale proceeds.
      • Where a balloon has been introduced, the sale proceeds are utilized to help clear the final balloon rental

Contract Purchase 

Great product for the VAT exempt business with the option of eventual ownership.

Structurally similar to Contract Hire, Contract Purchase enables customers to make fixed monthly payments. However, with Contract Purchase the customer has the option of retaining the vehicle at the end of the contract. The contract is expressed with a guaranteed residual value set by the funder at the start of the contract.  This gives the customer two options by the end:

1. Hand the vehicle back to the funder

2. Keep the vehicle by paying the outstanding residual value and using any equity as a deposit for the next vehicle.

Contract Purchase is ideal for companies that utilise high value cars and want funding flexibility along with the opportunity to own the vehicle without the residual risk.

Lease Purchase

Traditional vehicle finance

Lease Purchase, a product very similar to Hire Purchase, is a more conventional funding facility that has been “outshone” in some respects by more recent products such as Contract Purchase or Personal Contract Purchase. Nevertheless, traditional Lease Purchase / Hire Purchase has a number of strong advantages for customers. Key customer benefits:

      • Ideal for non-VAT registered companies that require ownership of the vehicle at the end of term
      • Effective budgeting with the funder’s balloon facility. Ownership of the vehicle can be acquired once the balloon has been paid in full
      • Monthly payments are not subject to VAT
      • The vehicle is registered in the name of end user c/o the funder

Lease Purchase is a dedicated funding product that does not include maintenance or any other value added services. The customer is liable for the full value of the vehicle and has no option to return it at the end of the contract. Should the agreement be for an LCV (light commercial vehicle), then the full amount for the VAT on the purchase must be paid upfront by the customer. This is a reclaimable payment providing you are a VAT registered business.

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