Other Funding Options
Contract hire is widely used as a funding method but other funding options area available depending on your personal circumstances such as contract purchase, Hire Purchase, Finance Lease.
It is important that you choose the right vehicle funding option that suits your circumstances, whether you are a corporate customer or a private individual. DFC will guide you through the numerous options available and help you select the most cost-effective solution.
Here are some of the common options offered by DFC, however there are also a range of bespoke solutions where we tailor the funding solution to your individual needs.
Contract Purchase
Contract Purchase provides the facility to purchase vehicles over a predetermined period of time and at a fixed monthly cost. This means that businesses do not have to take the depreciation risks usually associated with vehicle ownership.
The fixed monthly rental calculation is based upon the cost of the vehicle, the expected depreciation and the vehicle mileage, as well as optional service and maintenance choices.At the end of the contract, you can choose to make a final balloon payment to own the vehicle or you can return the vehicle to DFC for Remarketing, with no further payments. This is also a popular option for individuals who have elected to take the cash alternative to the company car as a part of their employment package.
Finance Lease
Finance Lease is a tax efficient option where you can choose to pay either the entire cost of the vehicle, including the interest charges, over the agreed period or you can opt to pay a lower monthly rental rate with a final balloon payment based on the expected market resale value of the vehicle.
The monthly payments are fixed over the duration of the contract assuming that the contract parameters remain the same. This means that you can budget your vehicle cost through fixed monthly charge, but do not need to manage the administration and operating risks.
