Choosing the right finance for your vehicles is not as simple as chasing the lowest rate amongst your panel of funders. There are numerous other considerations to take into account, including some or all of the following,
- Does the deposit requested fit into your cashflow?
- Does your proposed purchase fit into your VAT cycle?
- Can you defer the VAT payment if you need to?
- Do you want a hire purchase or lease agreement on the vehicles?
- What are the features, benefits and tax implications of each?
- Do you want a fixed or variable rate agreement?
- What are the features and benefits of each?
- Do you want to defer a percentage of the purchase price until the end of the agreement?
- Will the vehicles residual value cover the balloon payment?
- How can you minimise documentation fees?
- Are you giving personal guarantees when they are not really needed?
- Does your agreement give you flexibility over the date of disposal?
- Are you exposed to high settlement fees when the time comes to sell?
- Finally, after all that, are you getting the best rate?
LCVR are happy to discuss these issues with you, and suggest the most appropriate funding for your business assets. We can also introduce you to one of our panel of funders, who may be more competitive that the sources of finance you use now. Our Managing Director has over 15 years experience in vehicle finance, specifically for rental companies. Please complete the ‘contact us’ sheet for further information.