Need Equipment Or Extra Vehicles

Buy outright or lease purchase?  Finance lease or contract hire?  The choices can be bewildering...

There are many questions to consider when deciding which option is best for you and your business.   For example:  

• Do you want to own the asset outright?
• How strong is your cashflow?
• What is your VAT status?
• How profitable is your business?
• Do you want the funding to be on or off balance sheet?
• Would you prefer to make regular repayments only or make a lump sum repayment at the end?
• Will your vehicles have high mileage use

Spiral will help you understand the options and find the best solution for your business!

Some of the alternatives available :

• Hire / lease purchase -  a straightforward repayment facility where you ultimately own the asset. Regular payments based on fixed or variable interest rates, scheduled to suit your cashflow. Can be regular payments over a period or with lump sum ‘balloon’ payment at the end.  
• Finance lease – a flexible funding vehicle offering all the practical benefits of ownership but without any of the potential burdens. Flexible payment structures give you immediate and full use of the asset with minimal up front outlay. Rentals can normally be offset against tax as can the VAT element.
• Operating lease -  particularly effective for high value or highly specialised assets. Residual values are usually built in to the lease arrangements to reduce the regular monthly payments. Assets normally treated as ‘off balance’ but with rentals still offset against tax, and allowing VAT to be reclaimed.
• Contract hire -  ideal solution for companies who want to concentrate on their business activities without the financial and administrative burden of owning a vehicle fleet. Contract can be scheduled to suit particular requirements in terms of duration and mileage terms. Can be treated as ‘off balance’ sheet and can be with or without full maintenance. Normally offset against tax and VAT reclaimable.