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'The personal service is quite unique and uncompromised.
- Zue Newton, Consultant, Richmond.

'We have actively recommended the service to many of our clients, who have also been given the same level of service.
- Nick Tasquier, Alpha Financial. Horsham
Financing

Once you’ve settled on the car, the package becomes all important.

MHH is a Lombard & Black Horse agent, but we’re an independent company and are connected to over 20 other finance houses through our fleet division. This means we can beat most finance quotes for Contract Hire.

We can also offer help with PCP’s, Hire Purchase, Lease Purchase, Finance Lease and Balanced Payment. Whatever you’re preferred finance route, we can help you. Try us – you won’t be disappointed.

Outright Purchase

The option of Outright Purchase places the vehicle and all of its maintenance into the the owner's hands. This asset will also be placed on the balance sheet of the company. While allowing total flexability in terms of a replacment, the company has to account for the vehicle's rapid depreciation and the time spent dealing with its maintenance and disposal.

This option can be funded in two ways:
- The purchaser having sufficient funds to finance the purchase
- A bank loan, usually in the form of an overdraft

VAT:
Unless it is a commercial vehicle, the VAT paid in the vehicle's purchase price cannot be reclaimed and is simply lost - making a 17.5% price (and hence cost) disadvantage compared to that being paid by finance companies.

 
Personal Contract Purchase (PCP)

Contract Purchase works in a similar way to Contract Hire only with the added opportunity (not obligatory) to purchase the vehicle at the end of the hire period by paying a pre-determined one off balloon payment (i.e. a single large final payment). Following this payment legal ownership passes to to the user.

There are three options available to the user at the end of the hire period:
- Return the vehicle to the company
- Purchase the vehicle at the pre-determined residual value
- Retain the vehicle and re-finance the balloon payment

VAT
:
The vehicle is purchased inclusive of VAT and repayments do not carry VAT except for the maintenance element, 100% of which is recoverable.

Hire Terms:

- Cars owned by the finance provider (until balloon payment)
- Cars for lease with option to purchase at end of hire period
- Agreed mileage limits

Services Included:
- Sourcing and delivery of the vehicle of choice
- Road Fund Licence for the duration of the contract
- Maintenance (excluding accident repairs, but including tyres, exhaust etc.)

Extra Services Available:
- Vehicle replacement in event of accident or failure
- Breakdown cover programmes
- Motor Insurance - individual or fleet
- GAP insurance

 
Contract Hire

The user will pay a monthly fee that includes a residual value and mileage costs for the predetermined period. The depreciation of the vehicle over the leasing period will also be covered in this monthly fee. This effectively means that the user will only pay for the use of the vehicle.



VAT:
Since August 1995, the finance company has been able to reclaim VAT levied on the price paid for a new vehicle, with these benefits being reflected in lower monthly rentals. The rentals themselves carry VAT. 100% of this VAT can be reclaimed by the hirer (assuming they are VAT registered) if the vehicle is used solely for business; and 50% if there is an element of private use, although this does not apply to commercial vehicles, where in all cases 100% is recoverable. Where maintenance is included, 100% of the VAT levied on maintenance can be reclaimed: the finance company will specify how much this is.

Hire Terms:
- Cars owned by finance provider
- Cars for lease only with no option to purchase
- Agreed mileage limits

Services Included:
- Sourcing and delivery of the vehicle of choice
- Road Fund Licence for the duration of the contract
- Collection of the vehicle at the end of the contract
- Maintenance (excluding accident repairs, but including tyres, exhaust etc.)

Extra Services Available:
- Vehicle replacement in event of accident or failure
- Breakdown cover programmes
- Motor Insurance, individual or fleet
- GAP insurance

Please Note
As the contract covers a fixed term, there may be penalties incurred by the user if the contract is terminated early. Similar charges may also be incurred if terms of the contract are broken, for example exceeding mileage limits.

 
Hire Purchase

This is a fixed cost, fixed loan to support purchase. In this option the user is effectively the owner of the vehicle but not officially until the final payment has been made.



VAT:
As the monthly payments constitute loan repayments, they do not carry VAT. The capital cost can be written down for tax purposes on a reducing balance basis with up to £3000 capital allowances available against taxable profits per annum. Interest (usually without limit) is also allowed against tax. These allowances may be restricted if there is an element of private use.

Services Included:
- Sourcing and delivery of the vehicle of choice
- Road Fund Licence for the duration of the contract
- Collection of the vehicle at the end of the contract
- Maintenance (excluding accident repairs, but including tyres, exhaust etc.)

Extra Services Available:
- Vehicle replacement in event of accident or failure
- Breakdown cover programmes
- Motor Insurance, individual or fleet
- GAP insurance

This is a fixed cost, fixed loan to support purchase. In this option the user is effectively the owner of the vehicle but not officially until the final payment has been made.

VAT
As they constitute loan repayments monthly payments do not carry VAT. The capital cost can be written down for tax purposes on a reducing balance basis with up to £3000 capital allowances available against taxable profits per annum. Interest (usually without limit) is also allowed against tax. These allowances may be restricted if there is an element of private use.

Services Included
- Sourcing and delivery of the vehicle of choice
- Road Fund Licence for the duration of the contract
- Collection of the vehicle at the end of the contract
- Maintenance (excluding accident repairs, but including tyres, exhaust etc...)

Extra Services Available
- Vehicle replacement in event of accident or failure
- Breakdown cover programmes
- Motor Insurance, individual or fleet
- GAP insurance
 
Baloon Hire Purchase
 
Finance Lease

With Finance Lease there is potential low initial rental. This is achievable through agreeing a higher residual value to be paid at the end of the lease. This final payment is made through the lessee selling the vehicle to a third party. This gives the potential for the lessee to make a profit on the sale, if the sale amount exceeds the pre-agreed residual payment.

There is no mileage limit under a Finance Lease as the lessee will ultimately pay for the depreciation of the vehicle as a direct result of high mileage.

VAT:
As with Contract Hire, since August 1995, the lessor has been able to to reclaim the VAT levied on the purchase price of the new vehicle. This has the effect of making a Finance Lease rental lower than the equivalent Lease Purchase repayment. The rental carries VAT; the lessee can reclaim this, although (as with Contract Hire) the claim is restricted to 50% if there is any element of private use.

Hire Terms:

- Cars owned by finance provider (until balloon payment)
- Cars for lease with lessee to sell vehicle to a third party at end of hire period
- Agreed residual value

Services Included:
- Sourcing and delivery of the vehicle of choice
- Maintenance (excluding accident repairs, but including tyres, exhaust etc.)

Extra Services Available:
- Vehicle replacement in event of accident or failure
- Breakdown cover programmes
- Motor Insurance, individual or fleet
- GAP insurance

 
Do you need additional information?
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