Contract Hire, PCP & Leasing For Business Users

"We suggest that PCP is the preferred choice for purchasing vehicles for business use. This often surprises our customers as Contract Hire is regarded as VAT efficient and PCP is believed to be only for private individuals."

"Often PCP repayments are cheaper, Contract Hire cannot be early terminated and if there is any equity value remaining in the car at the end of the period the buyer under PCP can purchase the car thus benefiting from the difference which may be as much as a few thousand pounds. We always suggest you consult an accountant to assess the most beneficial product for your business but more often than not PCP comes out best"

Obviously circumstances differ greatly between businesses and users but to help you decide the fundamental funding differences are shown in the table below.

The purchase fee is payable with the Guaranteed Minimum Future Value/Optional Final Payment if you wish to own the vehicle at the end of the agreement. Finance subject to status. Guarantees/indemnities may be required. Further charges may be made subject to condition if the vehicle is returned at the end of the agreement. Certain categories of business user may be excluded. Details correct at 27th October 2007 and are subject to change without notice. Land Rover Financial Services, AL1 2RW.