Finance

"Smiths offer a wide range of finance options to ensure that we can offer tailor made solutions which best meet the needs of all of our customers. On this page you will find information about the various types of finance available and our in-house specialists are always on hand to discuss the various options with you in more detail.

PERSONAL FINANCE OPTIONS

BUSINESS FINANCE OPTIONS

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Renault Selections / PCP

Renault Selections is a tried and tested way of financing your new or used Renault car. In fact, its as easy as 1, 2, 3:

finance

WHAT HAPPENS AT THE END OF MY AGREEMENT?

When your Selections finance agreement comes to an end you will get three choices:

SELECTION 1- DRIVE AWAY A NEW RENAULT

If the vehicle is worth more than the Optional Final Payment amount, you could use the difference towards the deposit on a new Renault.

SELECTION 2 - RETURN YOUR RENAULT

Simply return your Renault in good condition and pay nothing, as lont as you meet any conditions set at the start of the agreement, such as not going over the areed mileage.

SELECTION 3 - KEEP YOUR RENAULT

Pay the Optional Final Payment and you own the vehicle.

WHAT ARE THE BENEFITS OF RENAULT SELECTIONS?

  • The deposit you pay is negotiable to suit your needs
  • Monthly payments are fixed for the duration of the agreement
  • You have the option to change you car every 2 to 3 years
  • Upgrade to a better specification
  • Guaranteed future value (Optional Final Payment) at the end of the agreement, giving you added security

Click here to view our selections offers

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Renault Hire Purchase

Hire purchase is the traditional method of spreading the cost of buying a vehicle. It is ideal for people who want to retain ownership of the vehicle, are unsure how long they may wish to keep the vehicle and / or who would like to mantain their security by holding on to their savings.

With Renault Hire Purchase you know exactly what the future holds because you set-up everything when you buy the car and nothing changes throughout the life of the agreement,

WHAT ARE THE BENEFITS OF RENAULT HIRE PURCHASE?

  • Flexible initial outlay with the option to pay as little as £99 as a deposit
  • At the beginning of the agreement, both the amount you will pay, and the repayment period, is fixed and will not change
  • The interest rate is fixed, even if other interest rates go up the rate on you agreement will not be affected
  • Payment terms are flexible; you can choose the repayment period to suit you, ranging from 1 to 5 years. The idea is to adjust th payment to what you can afford.

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Contract Hire

Contract Hire is an ideal product for VAT registered companie who don't want the financial risking of running their own car and van fleets, and who want to reduce the administrative full maintenance to cover routine servicing and tyre replacement.

WHAT ARE THE BENEFITS OF CONTRACT HIRE?

  • Low initial rental (usually equivalent to 3 monthy payments)
  • upto 100% of the rentals can be offset against taxable profits
  • Depending on the vehicle type, and the nature of its use, up to 100% of the VAT on the rentals can be reclaimed
  • Vehicles do not show on the balance sheet
  • Road tax is included in the contract
  • Costs are fixed for the length of the agreement

Please note, all references to taxation and VAT are subject to confirmation by your professional advisors.

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Business Hire Purchase

Hire Purchase is simple and quick to put in place. It appeals to a wide range of customers, from sole traders to large fleets. A typical Hire Purchase customer:

  • Wants to retain ownership of the vehicle
  • is unsure how long the wish to keep the vehicle
  • Does not want to be tied to mileage restrictions
  • Does not want to use their capital or overdraft to pay for vehicles

Hire Purchase provides fixed repayments and fixed interest so you an control your costs. The deposit amount can be varied to fit your budget, allowing you to use your capital or overdraft facility to invest in your business rather than you vehicle. This, therefore, opens up an alternate line of credit which may be useful in the future.

A POSSIBLE TAX BENEFIT

As with an outright purchase, a vehicle funded using Hire Purchase is deemed to be a fixed asset and will
be accounted for as such on your balance sheet. However, ownership under Hire Purchase only passes to
the purchaser at the end of the hire period, usually after the payment of the final instalment to the lender.

For cars, the Inland Revenue currently permits a writing-down allowance of 25% of the purchase price of the
vehicle per annum to a maximum of £3,000 on a reducing balance basis. The total allowances available
over the period ownership equates to the fall in value over this time, being the difference between the
original cost and final sale proceeds.

Please note, all references to taxation and VAT are subject to confirmation by your professional advisors.

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Lease Purchase

Lease Purchase is a Hire Purchase agreement, offering you the option to own the vehicle at the end of the
agreement. It offers fixed repayments and fixed interest payable on the purchase price less the deposit.

In addition, you have the ability to defer a proportion of the vehicle?s cost to a final balloon payment at the
end of the agreement. This will result in lower monthly payments than Hire Purchase and could, therefore,
improve your cash flow.

WHAT ARE THE BENEFITS OF LEASE PURCHASE

  • Simple and quick to put in place
  • You retain ownership of the vehicle
  • You are not tied to mileage restrictions
  • You have fixed repayments and interest to control your costs
  • Offers the same tax benefits as Hire Purchase

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Lease Hire

Lease Hire has many of the benefits of Contract Hire without the perceived in flexibility.

A typical Lease Hire customer:

  • Wants the benefits of ownership without being the real owner
  • Wants to offset the whole rental amount against taxable income
  • Does not want a mileage restriction
  • Wants fixed monthly rentals with flexibility through variable deposit options

Lease Hire offers you the option to offset a proportion of the vehicle cost as a final payment. This is usually referred to as a balloon payment and is calculated at the outset of the agreement as a percentage of the vehicle price. This could reduce your monthly rentals and have a positive effect on your cash flow.

Your balance sheet is likely to show the value of any vehicle on a Lease Hire agreement as a fixed asset
and any outstanding rentals as a liability. With low deposits, flexible repayment periods and fixed rental
amounts you could control and improve your cash flow.

WHAT HAPPENS AT THE END OF MY AGREEMENT?

At the end of the agreement you have three options:

  • You can return the vehicle and we will forward your share of the balance of proceeds to you once anything owed to us, including any sell-on expenses, have been settled
  • Acting as our agent, you can sell the vehicle on our behalf and receive a share of the sale
    proceeds, assuming no balance is owed to us
  • If you wish to continue using the vehicle you can pay a nominal fee (usually one month?s rental) and
    carry on driving the vehicle for the whole of the following year. There are no mileage restrictions,
    simply drive as much as you want to

TAX RELIEF AND VAT

You may be able to claim tax relief on Renault Lease Hire rentals.

After deducting a realistic residual value, the depreciation is charged as a revenue expense against the
profit and loss account. Interest is an allowable expense that can also be charged as a revenue expense
and spread over the term of the agreement. As Renault Business Finance can recover the VAT on the
purchase of all leased vehicles, your rental is calculated using the on-the-road (OTR) price exclusive of VAT.
You could claim up to 50% of the VAT payable on the rental on cars where there is both private and
business use and up to 100% on commercial vehicles and cars where there is no private use.

Please note, all references to taxation and VAT are subject to confirmation by your professional advisor.”

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