AVS specialises in contract hire and personal contract hire but is able to offer various other funding methods to suit your requirements. Please see information below for a brief outline of the services we are able to offer.

Contract Hire

• Contract Hire is fixed cost, fixed term financing for both cars and vans.

• All vehicles are subject to a predetermined mileage allowance as detailed by the customer

• All cars returned in excess of the contracted mileage will be charged an excess charge per mile. This figure varies from vehicle to vehicle.

• A full maintenance package is available which can include all servicing, maintenance, tyres, batteries, loan vehicle and recovery

• Deposits are generally expressed as 3 or 6 monthly payments in advance plus V.A.T.

• All monthly payments are all subject to V.A.T

• VAT on rental recoverable, subject to 50% block for private use

• VAT on services element of rental 100% recoverable by lessee

• Method of payment is by direct debit only

• Rentals allowable against profits (subject to proportional disallowance for vehicles costing >£12,000)

• No disposal worries at the end of the agreement as the finance company will take the vehicle back.

• Contract Hire is an off balance sheet facility, which means the car does not show as an asset of the company in the company accounts.

Personal Contract Hire

• Personal Contract Hire is contract hire for the private individual. This again is fixed term, fixed cost financing for cars. This has become a popular option with users opting out of company cars.

• All vehicles are subject to a predetermined mileage allowance as detailed by the customer

• All cars returned in excess of the contracted mileage will be charged an excess charge per mile. This figure varies from vehicle to vehicle.

• A full maintenance package is available at an additional cost which can include all servicing, maintenance, tyres, batteries, loan vehicle and recovery.

• Contracts are usually for a two or three year period and are based on 3 monthly payments as a deposit followed by 23 and 35 monthly payments respectfully.
• All payments are subject to V.A.T. which is not reclaimable by the customer.

• Method of payment is by Direct Debit Only.

• No disposal worries at the end of the agreement as the finance company will take the vehicle back

Hire Purchase

· Hire Purchase is a simple, flexible funding option which allows spread payments over a specific period.

· Hire Purchase is available to both Business Users and Private Individuals.

· Hire Purchase offers the customer the opportunity to fix the interest rate at the beginning of the agreement so as to enjoy protection against interest rate rises during the agreement so also giving the benefits of easier budgeting.

· The customer will have eventual ownership of the car, with no restrictions on mileage, etc.

· Initial capital outlay is reduced with flexible deposits so reducing the funds withdrawn from the Customer's business.

· With Hire Purchase from a tax allowance point of view, the interest element of the monthly payment can be offset against taxable profits.

· Vehicles may be written down against taxable profit at the rate of 25% per annum

· Vehicles will be classed as an asset of the company and will be shown in the balance sheet as such.

· NO V.A.T. is payable on the monthly payments.

· Vehicles may be settled prior to the end of an agreement

Contract Purchase

· Contract purchase suits companies who want to own their vehicles, but want to avoid the risk of depreciating assets.

· Contract purchase has similar benefits to contract hire regarding fixed payments and flexible terms

· A full maintenance package is available which can include all servicing, maintenance, tyres, batteries, loan vehicle and recovery.

· The vehicle resale value at the end of the contract purchase agreement will be guaranteed by the finance company for a known, fixed amount

· Ownership passes to the customer at the end of the contract purchase agreement when all payments have been made

· Writing down allowances: 25% of the capital cost of the vehicle can be offset against tax each year up to a maximum of £3000 per annum

· VAT: not recoverable unless vehicle is for 100% business use

· Balloon: unless the lessee pays the final payment at the end of the term, ownership stays with the lessor.

Personal Contract Purchase

· Similar to Contract purchase, but for private customers.

· Contract purchase has similar benefits to contract hire regarding fixed payments and flexible terms

· A full maintenance package is available which can include all servicing, maintenance, tyres, batteries, loan vehicle and recovery.

· The vehicle resale value at the end of the contract purchase agreement will be guaranteed by the finance company for a known, fixed amount

· Ownership passes to the customer at the end of the contract purchase agreement when all payments have been made

· Balloon: unless the lessee pays the final payment at the end of the term, ownership stays with the lessor.

Lease Purchase & Finance Lease are other funding options available. Should you wish to know more about these funding methods or any further information on the above please do not hesitate to contact us on:-

08707 492100 / 08707 492101
or e-mail