Finance Options

Contract Hire and Leasing is similar to a long-term rental and can include service and maintenance, breakdown cover and a replacement vehicle. Your monthly payments will be subject to VAT, which can be reclaimed (100% for commercial vehicles and 50% for cars).

The monthly rental is calculated from the length of contract and the estimated miles driven. At the end of the period the vehicle is returned to the contract hire company as the leasing company always owns the vehicle. It is treated as "off balance sheet funding" in a company's accounts.

This is a completely risk free package for our customers and almost always works out cheaper than outright purchase of a vehicle. This is due to the extra discounts and support received from manufacturers, which are passed on to the hirer in the monthly rental

Contract Hire/Leasing Features:

• Fixed cost motoring
• Fully inclusive maintenance available
• Very cost effective
• VAT efficient – part or fully reclaimable
• Low initial payment
• Low monthly payment
• Complete no risk option

Hire Purchase or Contract Purchase is a method of financing a vehicle over a set period. The full purchase price of your vehicle is paid off with interest in equal monthly payments over the agreed period. Providing all payments are made on time this type of agreement means ownership of the vehicle is transferred to the contract holder when the option fee is paid at the end.

Sometimes part of the purchase price or capital amount is deferred until the end of the agreement - this is usually called a balloon and reduces the monthly payment. The balloon amount is due as a lump sum payment, in order for ownership to pass at the end of the agreement. In some of these contracts the balloon is guaranteed and the vehicle can just be returned to the finance house.

Hire Purchase/Contract Purchase Features:

• Flexible initial outlay
• Low monthly payment (if combined with a balloon)
• No risk disposal option (only on contract purchase)
• You own the vehicle
• Maintenance available

Personal Contracts have been designed for customers who want a vehicle that allows them to benefit from business user terms and low monthly payments.

Employees opting out of their company car scheme or self-employed vehicle owners often use this method of hiring a vehicle. There are 2 options available to you in this scheme.

The first is Personal Contract Hire in which you pay the depreciation cost of the vehicle (this is calculated on the mileage and length of contract) plus an interest element of the vehicle cost. There is a fixed monthly payment with options to include maintenance and the road tax for the period of the agreement. At the end of the agreement the vehicle is returned to the contract hire company.

The second option is Personal Contract Purchase. In this scheme part of the capital (calculated according to length of contract and anticipated mileage) for the vehicle is paid back, including interest, over a set period. At the end of the contract period you have the choice of either returning the vehicle to us or paying off the guaranteed future value or balloon and owning the vehicle outright. This means that you can use the equity left in the vehicle as a deposit towards the next contract or vehicle.

The biggest benefit in both of these schemes is a greatly reduced monthly cost in comparison to Hire Purchase contracts, as in essence, you only pay for the true monthly cost of the vehicle.

Personal Contract Features:

• Fleet rates extended to individuals
• Low initial outlay
• Low monthly payments
• Maintenance package available
• Option to purchase (pcp)
• No risk disposal
• Available to personal users

Leasing with Biscuit means the financial responsibility for the vehicle is held by you the lessee or customer. The vehicle is leased from a finance company and monthly payments are calculated on the value of the vehicle excluding VAT (unlike Hire Purchase which is calculated on a fully inclusive amount).

Part of the capital can also be deferred to the end of the contract. The lessee is responsible for disposal at the end of the period and benefits from any disposal profit. This type of agreement includes VAT, which can be reclaimed in the same way as in Contract Hire (100% for commercial vehicles and 50% for cars)

Finance Lease Features:

• Low initial outlay
• Low monthly payments
• VAT efficient (can reclaim all or part)
• Available on nearly new vehicles
• Maintenance packages available

With Biscuit, for a fixed monthly cost, we will cover your day-to-day car maintenance; it’s hassle-free motoring and takes the worry out of caring for your vehicle!

Our maintenance contract will cover your vehicle for routine services, tyres, exhaust, wipers, batteries and bulbs. You even have breakdown cover and accident management included for the duration of the contract. In the event of an accident, we’ll make sure we get you back on the road as fast as possible, regardless of fault – 24 hours a day, 365 days a year.

Of course, there are a few costs that your contract won’t cover – fuel, insurance and accident repairs.

The cost will depend on your vehicle, how long you intend to keep it, and how many miles you drive. We’ll be clear about the cost of your cover right from the start and it’s fixed for the agreed period of your contract.

There are no hidden extras, and no small print – if you have any questions about your cover, simply refer to your handbook, or call us.