Chorley Nissan Finance

Finance Options

Chorley Group has a variety of finance options to suit you. Whether you are a business user or looking for a personal purchase, we have the best borrowing options available for you. We can provide finance to help you easily buy your car, van or truck.

Please see below:

Personal Contract Purchase (PCP)

A Personal Contract Purchase ownership is designed again for the private motorist method of funding that allows you to run your own car on similar basis as company contract without having pay tax.

Enjoy the pleasure of driving a new vehicle every 2-4 years with the option of owning or returning at the end of the contract. Finances are structured so that you do not need large deposits and guaranteed residual value eliminates risk depreciation keeping monthly repayments low.

              
Finance Explained

Personal Contract Purchase

Click the video link to the right to find out more about Personal Contract Purchase (PCP) finance.
                   
                                


Hire Purchase

A hire purchase agreement, also referred to as HP, is a hire agreement which gives you an option to purchase at the end of the agreement. HP is normally a fixed cost (where the APR is set before the contract begins), fixed period loan (typically, 2-3 years) of money to purchase goods, which is secured against the car being bought.

You are the registered keeper of the car and are responsible for insuring and maintaining it, but the finance company providing the HP agreement remains the legal owner (‘has title’) of the car until the amount you have borrowed has been fully repaid and you have decided to pay the ‘Option to Purchase’ fee. However, this is completely optional.

              
Finance Explained

Hire Purchase Finance

Click the video link to the right to find out more about Hire Purchase (HP) finance.
                   
                                


Lease Purchase

Lease Purchase is very similar to Hire Purchase but has a deferred (balloon) payment at the end of the contract.

This is a non VAT product and there are no mileage penalties. This is an ideal funding option if a company is not VAT registered.

Benefits
    •    No mileage penalty
    •    Changes are exempt from VAT
    •    Tax reduce – reduces tax bill
    •    Can be done as a business or as an individual
    •    Capital release – leaves money available to develop other parts of the business
    •    Vehicle is shown on the balance sheet as an asset
    •    Interest charges allowable against taxable profit – reduces tax bill
    •    Ownership of the vehicle - control of the usage and disposal.                  

              
Finance Explained

Lease Purchase Finance

Click the video link to the right to find out more about Lease Purchase (HP) finance.
                   
                                


Business Contract Hire (CH)

Contract Hire is available to Limited Companies, Sole Traders or Partnerships and offers the company fixed monthly budgeting with minimal outlay. It is an extremely tax effective method of funding a business vehicle as the rentals may be offset against your taxable profits.

Additionally, if you are a VAT registered business 100% of the VAT on the monthly rentals may be reclaimed where the vehicle is either a van or a car used soley for business purposes. 

Where the vehicle is used for business and private mileage only 50% of VAT on rentals is recovered. 

Benefits

  • Fixed cost allowing easy budget management
  • Low initial outlay (usually 3 rentals in advance)
  • Supplier arranges delivery and collection of vehicle
  • No responsibility of vehicle disposal
  • This form of funding is considered to be ‘off balance sheet’ and the vehicle will not be shown as an asset within your balance sheet
  • VAT registered business can reclaim 50% of the VAT on the contract and 100% of the VAT on any maintenance element
  • No depreciation risk
  • Finance company carries Residual Value Risk
  • Ability to change for a brand new vehicle on a regular basis
     

Personal Contract Hire (PCH)

Specifically designed for the private motorist.  This form of funding allows you to run your own car on a similar basis as a company car without having to pay tax on the benefit.  Unlike many company car schemes you are not restricted in your choice of vehicle.

Benefits

  • Fixed cost allowing easy budget management
  • Low initial outlay (usually 3 rentals in advance)
  • Supplier arranges delivery and collection of the vehicle
  • Ability to change for a brand new vehicle on a regular basis
  • No depreciation risk
  • No responsibility for vehicle disposal if returning the vehicle
  • Finance company carries the Residual Value Risk
     


Financial Lease (FL)

A car finance lease is very similar to Contract Hire, however at the end of the contract the business may be liable for a further payment. This happens when upon completion the vehicle sells for less than the anticipated amount and the business has to pay the difference. Mileage over the limit set in a contract hire arrangement will incur additional costs and if the business expects a very high mileage then accepting some risk in the eventual value of the vehicle may be preferable to accepting the automatic additional mileage costs in a contract hire arrangement.

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