Purple Contracts

About Us

Purple Contracts specialise in car and van leasing. Sourcing vehicles at the best prices with a range of finance options to aid your purchase. Personal and Business Contract hire and Leasing. http://www.purplecontracts.com ...

Finance Lease....

We are often asked about the issue of "vehicle title" at the end of a Finance Lease...here's how it works: All finance methods fall within two categories: Owning (On Balance Sheet) or Hiring (Off Balance Sheet), Finance Lease is an OWNING method. Finance Lease looks and feels like Hire Purchase. The agreement is structured so that you pay off the whole value of the asset. If you lease a vehicle worth £10,000, you will pay the whole £10,000 plus interest during the lease.Finance Lease is ideal for customers who want to have all the benefits normally associated with owning a vehicle whilst maximising tax efficiencies and minimising the initial outlay (ie. Low deposit). Importantly, you should note that for tax purposes finance lease is still classed as a hire agreement, which means that you get 100% tax relief on your payments to offset against your taxable profits. With Finance Lease, you pay VAT monthly and claim it back during your normal VAT cycle. You simply have to agree a monthly payment and contract period, which can include an acceptable final payment, often called a "Balloon" or "Terminal Rental" Payments are made monthly by Direct Debit throughout the contract term. You can terminate the agreement early, although there are of course early settlement charges (as with any funding method) but they are not as harsh as they tend to be on contract hire. Finance Lease is very flexible, and at the end of the contract you have several options: You can sell the vehicle to a third party, and use the sale proceeds to make the final balloon payment, if one has been included. Any sale proceeds over and above the balloon are profit, which is shown on your books, therefore taxable. This profit/loss potential is the reason why a Finance Lease is ON the Balance Sheet. Beware, if the vehicle sale price is less than the balloon, this is your liability and you must make up the difference.Most of our customers, however, choose to part exchange or sell the vehicle, and replace it with a new one. The leasing company will typically retain 2% of your sale proceeds; like a documentation fee (but less expensive). This allows you to use your sales proceeds, less any balloon (if applicable) as your deposit on the new vehicle. Alternatively, you can use the cash for any other purpose. It is, after all, yours. Alternatively you can keep the vehicle for as long as you want as long as you pay an annual nominal sum called a peppercorn rental to the leasing company. Even this payment is 100% allowable against taxable profit.In brief, you can do ANYTHING you like with it at the end EXCEPT treat is as an asset for tax purposes (as you would then be attempting to further offset the vehicles' depreciation against taxable profits......you will have already offset 100%, you can't offset any more than 100%).

Contract Hire......

The REAL advantages of Contract Hire.... In the current economic climate everyone is looking to save a few quid. If you're a business user you will need to include transportation costs in your Business Plan and Cashflow Forecast. Even if you're not in business we all need to budget, right? So, you're in the market for a new vehicle - what's it going to cost? How much deposit do I need? How much will it cost to run the vehicle? How much will it be worth when I've finished with it? How much is road tax these days? I may need to borrow money next year....will the fact that I'm paying for a car or van effect what I can borrow?If you are thinking about any of these things, you need to think about Contract Hire.Contract Hire (or Personal Contract Hire) is the ONLY way to guarantee the running cost, and the true cost, of running a vehicle (or fleet of vehicles). The monthly cost is fixed....You will never pay any more, or less, than the monthly cost of the Contract. No more queueing at the Post Office....There is no need to tax the vehicle - we do it for you, for the whole term of the contract! If you choose the optional maintenance pack we even service it for you (which includes a full valet!)....and we'll include unlimited tyres. For business users, it's classed as a pure business expense and it's therefore Tax Deductable (Vans are 100% Tax Deductable). Best of all?.......Because it's a "rented vehicle" it's OFF the Balance Sheet (which means it's not treated as an asset), and because it's classed as a rental it won't show as borrowings against you on your credit file, leaving other funding lines open!Talk to Purple!

ZERO DEPOSIT AVAILABLE

This is unique as most companies want 3 or even 6 monthly payment upfront! We can offer zero deposit on all our cars on business or personal contract hire. Visit our website www.purplecontracts.com or call us 08456 444 300 for quotes, information or advice.

Specialist Services

Contract Hire and Leasing

Trade Bodies / Associations

BVRLA - British Vehicle Rental and Leasing Association The BVRLA is the trade association for the UK vehicle rental and leasing association A Leaseplan UK Franchisee. Leaseplan, the biggest leasing company in the world.

Car Leasing | Contract Hire | Cheap Car Lease Deals | Van Leasing

Car Leasing, contract hire and car lease deals with great service. Cheap car and van lease deals for business or personal use. For fantastic car leasing deals, see http://www.purplecontracts.com

Opening Times

Mon-Fri 09:00-17:30, Sat 09:00-12:00

Trading Since

2007

Payment methods accepted

• American Express
• Cheque
• Mastercard
• Maestro
• Visa
• Bank Transfer
• Credit Card Payments

Other Services

• Free Parking
• Buy Online
• Delivery Service
• Customer Service / Helpline
• Free Quotes
• Customer Toilets
• Direct Debit
• Standing Order

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