Contract Hire
Contract Hire is a rental product where the monthly rentals are based on the period of hire, the annual mileage, the vehicle price and the anticipated future value of the vehicle.
Service and maintenance cover can be offered too at a small extra cost. You pay an initial payment followed by equal monthly rentals over a set period.
At the end of the agreement, as long as you have fulfilled the mileage and return condition requirements, you simply return the vehicle to us.
Key benefits of Contract Hire
- Lower fixed monthly rentals – you know where you stand.
- Rentals are allowable against tax (restricted to the vehicle costing more than £12,000).
- There’s an optional maintenance package available to make your budgeting even more predictable and easier to manage.
- Cash flow is improved.
- It’s not on your asset register.
- Administration is simple and easy to understand.
- You’re protected against any fall in used vehicle prices - useful in today’s challenging times.
- No disposal worries - you’re not responsible for disposing of the vehicle.
- Your vehicle can be changed for a new one at the end of the term – it couldn’t be easier.
Hire Purchase
The 'traditional' method of financing a new car.
Hire Purchase spreads the cost of your new Subaru over a fixed term. This usually comprises an initial deposit followed by regular, monthly payments over a number of years, until the balance is cleared.
Key Advantages of Hire Purchase
- The vehicle becomes your property at the agreement's end after the final monthly payment and option to purchase fee is paid.
- Payments are made monthly over a fixed period (usually 1-5 years).
- Payments do not change during the term, allowing for easy budgeting.
Balloon Payment
An attractive 'spin' on conventional Hire Purchase. This method of financing requires you to make a final ‘balloon’ payment at the agreement’s end, which then releases the car into your possession.
- Monthly payments are typically lower than with a 'standard' Hire Purchase arrangement.
- The vehicle becomes your property at the agreement’s end after the balloon payment and option to purchase fee are paid.
