Contents

Product range and operation
Contract hire & Personal contract hire
Contract purchase & Personal contract purchase
Conditional sale, Lease purchase & Hire purchase – fixed and variable rate
Sale and leaseback
Finance Lease
Cash purchase
Administration fees
Deposits & Initial payments
Cancellation of an order
Service and maintenance
Car insurance
GAP insurance
What happens if I have no service history on collection of the car?
Car delivery & collection
Vehicle condition
Company car taxation
The P11D figure



Product range and operation

At AutoFinance UK Limited, we offer the following products:

• Contract hire
• Personal contract hire
• Contract purchase
• Personal contract purchase
• Conditional sale
• Lease purchase
• Hire purchase – fixed and variable rate
• Sale and leaseback
• Finance lease
• Vehicle supply for cash
• We also have financial products for Asset Finance and big ticket leasing
• Short-term local car and van hire in Burgess Hill

We can organise any make or model of car, from a tiny Fiat to a Range Rover and commercial vehicles from small vans to 35cwt vans with box bodies, tail gates and refrigerated bodies.
For the larger customer requirements we can finance boats to refuse collection vehicles.
We use the buying power of our finance house partners to obtain maximum benefit for our customers.
If local dealers can beat our normal supply pricing, we will purchase there too!
Our agreements run between 24 months and 60 months. On a personal basis the contract mileage can be as low as 7,000 per annum, but more generally our customers’ request 10,000 per annum as the average.
Over that, our maximum mileages are 35,000 per annum for petrol cars and 40,000 per annum for diesel cars.
We can, when available, offer cars on shorter periods on two months to twelve month contracts.
 

Contract hire & Personal contract hire

This type of agreement allows the user to hire a vehicle for a given period, to include the vehicle maintenance and tyres or not, based on a specific contract mileage and to hand the vehicle back at the agreement end.
If the vehicle exceeds the agreed contract mileage an excess fee per mile is then paid.
Some finance companies allow the purchase of the vehicle at the agreement end as well. 
All rentals attract VAT at the prevailing rate.
With personal contract hire the VAT is not reclaimable.
With contract hire VAT can be reclaimed at 50% on the finance element of the rental and 100% on the maintenance element.
With commercial vehicles, the whole of the VAT can be reclaimed.
Road tax is supplied by the finance houses on these agreements.

Contract purchase & Personal contract purchase

These are both hire purchase agreements with the benefit of an optional balloon payment. In practise, it means you have the choice at the agreement end to buy the vehicle or hand it back to the finance house. The balloon figure is fixed on day one so you know throughout the agreement how much would be needed to buy the vehicle. The agreement can include maintenance and is based on an agreed mileage. If the vehicle is being returned to the finance company and has exceeded the agreed mileage, an excess mileage payment per mile will be charged. There is no VAT on the monthly payments, but VAT is added to any maintenance that may be added. Road tax is supplied by the finance houses throughout the agreement on Contract purchase, but only on the first year for Personal contract hire customers as the registration document is in the name of the customer.

Conditional sale, Lease purchase & Hire purchase – fixed and variable rate

For non-VAT registered companies that want eventual ownership of the vehicle.
The customer acquires the vehicle by paying fixed monthly instalments with the asset being shown on the balance sheet.
Part of the vehicle payments can be deferred into a balloon payment at the end of the agreement, which will equate to the anticipated market value of the vehicle at the end of the agreed period.
There is no VAT payable on the monthly payments.
For high balance or specialist equipment hire purchase, variable interest rates can be applied with either monthly or quarterly payments.

Sale and leaseback.

For companies wishing to retain the use of their vehicles, but generate capital from their sale to a finance house, and transferring to a VAT-beneficial funding method.
If a company currently owns its vehicles, it means a finance house will purchase the vehicles for an agreed price and lease them back to the company using either contract hire or finance lease

Finance lease

This product is ideal for VAT registered companies who want to handle the administration of their vehicles and also have the asset shown on the balance sheet.
This VAT beneficial finance option allows the customer to pay the entire cost over the agreed lease period plus an interest charge or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.
With most finance leases, there can be a secondary period where the customer pays a small annual rental and then sells the vehicle, for the market value, rebating a small percentage back to the finance house as their sales fee.
VAT is payable on all rentals.

Cash purchase

Should you wish us to purchase your vehicle for you and have it delivered to your door, we can do that as well.
We would negotiate a price on your behalf using our vehicle discounts and on agreeing the price the customer sends us the funds.
On clearance of those funds we would then arrange delivery.

Administration fees

All finance agreements organised by AutoFinance UK Limited attract an administration fee of £100.00 plus VAT.

Deposits & Initial payments

We take a £500.00 deposit on every order, which is then used as part of the initial payment or rental to the respective finance house on signing documentation just before delivery.
All agreements require an initial payment or deposit.
Typically an initial payment is equivalent to three monthly payments

Cancellation of an order

If an order has to be cancelled for any reason, the finance houses reserve the right to charge AutoFinance UK Limited accordingly.
We therefore have to pass this on.
The deposit paid would go towards this finance company fee.

Service and maintenance

Where applicable, servicing and the vehicle maintenance costs can be added to an agreement.
In addition, the replacement of tyres is covered when full maintenance is taken out with a contract.
When maintenance is not taken out on a new vehicle, the manufacturers require genuine parts to be fitted whilst the car is on contract.
Otherwise, they are quite happy for the car to be serviced at a non-franchised dealer.

Car insurance

Insurance has to be taken out on all vehicles, as if the vehicle was the driver’s property.
We require a copy of the cover note when produced.
Our associate company can provide insurance quotations for customers.

GAP insurance

We can offer GAP insurance to insure against having to settle an agreement early due to an accident.
This insurance covers the gap between the amount owed to the finance house and the original price of the car.
Our associate company can provide quotations for customers.

Contract mileage

Contracts that have specific mileages are designed to go the full contract distance.

Car Delivery and Collection

All cars are delivered to the customer address by the supplying dealership.
There is no extra charge for this.
We do require somebody to sign accepting the vehicle and in the case of a personal agreement the user or named person in the agreement should do this.
Vehicles are collected by agents of the finance houses at the agreement end.
Collections are usually organised by AutoFinance UK Limited on your behalf and we need at least three days notice to do this.

Vehicle condition

All vehicles should be serviced as per the manufacturers’ hand books and on collection the vehicle should look like it has done the contract mileage, no more no less.
By this we mean the vehicle may be allowed to have a stone chip on the bonnet, but scratches on doors and broken glass or chipped screens will not be allowed without a further charge.
All finance company’s agents on the vehicle collection check the car and obtain a signature with the basic damage, if any, clearly marked.
When the car reaches the depot, it is then checked using the parameters of the LeasePlan UK and BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear Guide and any bills sent to customers from there.

What happens if I have no service history on collection of the car?

The finance house will charge you a mileage based fee for each 10,000 miles the car has travelled, based on 1.5% of the CAP Monitor value.
Therefore, if you had a Ford Focus on an 06 plate with 55,000 miles on the clock from new, and the value in CAP Monitor was £4,175.00 the charge for no service history would be 4175 x 1.5% x 5.5 equals £344.47
If your service records are not available at the time of collection contact the dealer where the servicing was carried out for their service paperwork.

Company car taxation

The company car taxation system is based on a percentage of the car’s price, graduated according to its CO² emissions.

The P11D figure

This is the list price figure published by the vehicle manufacturer and applying on the day immediately before the date of registration.
The list price of a vehicle is capped at £80,000.00
The following items are included in the list price:

• Delivery charges
• VAT
• Standard accessories as supplied on the car
• Optional accessories added by the customer over £100.00
• Number plates