Brocars PLC is a fully licensed credit broker and can offer the following types of finance:

Hire Purchase

The 'traditional' way to purchase a car is by Hire Purchase. After paying the initial deposit the balance plus interest charges is repaid over an agreed period by fixed, equal monthly payments.

The agreement can be from 1 to 5 years and when all the payments have been made you become the owner of the vehicle.

There is no VAT added to the payments and the interest charges are tax deductible. The car is classified as a company asset, which allows it to be written down against taxable profits.

The VAT is not recoverable on the purchase price of the vehicle.

Lease Purchase

Lease Purchase is similar to Hire Purchase and provides the same tax and financial benefits as hire purchase but the monthly payments can be reduced by incorporating a 'balloon' payment at the end of the agreement.

This method of funding provides greater flexibility on the monthly rentals however it can result in you having to make up a shortfall if the resale value of the car is less than the balloon payment.

 Personal Contract Hire

This method of funding provides a fixed monthly rental for a vehicle over a fixed period and mileage. Road fund licence is included for the duration of the agreement and maintenance, breakdown recovery and replacement vehicles can be included in the contract.

Rentals take into account the vehicles future residual value so you do not repay the entire capital cost, effectively you are just paying for the use of the vehicle.

At the end of the contract the vehicle is returned to the leasing company, which means that you have no depreciation risk or problems with disposal of the vehicle

 Personal Contract Purchase

Essentially HP with a balloon. There is an initial low deposit, the balance plus interest charges is repaid over an agreed period (usually between 12-36 months) by fixed, equal monthly payments and because PCP's are purchase plans the payments do not attract VAT.

At the end of the contract you can either hand the car back or buy it for a final purchase price.

catchacar.co.uk is a website owned by Brocars PLC, a company licensed by the Office of Fair Trading with number 607182.

For further information or clarification on any issue contained within our finance section, please call us on 0870 803 4775 or send us a message by clicking here >>