For private individuals who want a hassle-free and cost-effective way to finance and maintain a vehicle.
Consultation and assessment of your requirements may reveal that a personal leasing product is the ideal vehicle financing solution for your motoring needs. PCP allows you to enjoy significant tax advantages and a choice of new or used vehicle every two or three years in return for a fixed monthly charge that is easy to budget for, as well as an all-inclusive (optional) maintenance and breakdown package.
| Choosing your Funding Method |
| Meeting your requirements |
Contract Hire |
Contract Purchase |
Hire/Lease Purchase |
Finance Lease |
Personal Leasing |
Outright Purchase |
| VAT recoverable on monthly rentals |
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| Finance/Taxation Issues |
| Accurate monthly budgeting |
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| Improved cash flow |
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| Minimum capital expenditure |
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| Fixed interest rate |
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N/A |
| Capital allowances available |
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N/A |
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| Rental allowable against taxable income |
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N/A |
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| Ownership of vehicle† |
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| VAT chargeable on rental |
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| VAT recovered on purchase cost by Network and passed on to customer in lower rental |
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| No depreciation risks |
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| Vehicle running requirements |
| No vehicle disposal problems |
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| Reduced administration |
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| On-going advice/support |
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| Road fund licence provided |
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| Breakdown rescue cover |
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| Replacement vehicle in case of breakdown |
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| Fixed charge Maintenance‡ |
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| VAT chargeable on services |
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| VAT recoverable on services |
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N/A |
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† At end of contract with financing products.
‡ Optional.
* Only 50% of the VAT relating to the finance element is recoverable if private use. 100% if only business use. 100% of the service element VAT (on contract hire only) is recoverable if business use.
** Road fund licence is provided for the first year only.
