From a single car to the entire fleet
Mulberry Financial Services work with you to provide a truly bespoke service to you and your business, finding exactly the right products and services. As well as the financial savings we also analyse current funding products within the market place then suggest ways of making them more cost efficient to your business. All our products are supplied through various funders like Lex, Lloyds TSB Auto Lease., Arval , Lombard and ING so you can be ensured that you are in safe hands.
We offer a wide and diverse range of products catering for a single private purchase or the companies entire fleet. The principal products we offer are the following.
CONTRACT HIRE*
Sometimes known as an Operational Lease. Contract Hire allows a company to pay for the usage of a car rather than pay for the ownership The contract is subject to a agreed annual mileage and can be supplied with or without a full maintenance option to include all servicing, parts and labour and annual road fund licence. This is known as no risk and no reward, that is to say that at contract end you will simply hand the car back to the finance company, with nothing further to pay, subject to terms and conditions of the contract. All monthly payments are subject to VAT and the finance is 'Off Balance Sheet' Terms range from 12 to 48 months with various deposit options available.
HIRE PURCHASE
A conventional and traditional method of funding a car over a period of months. Benefits clients who want to totally pay for the goods in a cost effective manner and enjoy the flexibility of being able to settle the agreement early. This is available to clients wishing to acquire new or pre-owned vehicles and in certain cases can be offered with a balloon or residual payment option. Contract terms range from 12 to 60 months. Monthly payments are not subject to VAT. Hire Purchase is ideally suited to private individuals
PERSONAL CONTRACT PURCHASE
Payment structure similar to Hire Purchase but with an agreed annual mileage. With the added benefit of having an ‘Optional Final Payment’ at the end of the agreement often referred to as a ‘Minimum Guaranteed Future Value’ which protects the hirer from negative equity at the end of contract. At the end of the agreement you can either hand the car back to the finance company, with nothing further to pay. Pay in full the Optional Final Payment and keep the car, or part exchange the car, any equity is rolled forward towards the deposit on your next car.
LEASE PURCHASE
A more sophisticated method of funding which works similar to HP. With a differed residual payment at the end of the agreement for the purpose of improving cash flow.
FINANCE LEASE*
Typically structured in the same way as Lease Purchase. With or without a balloon payment at the end of the term to have the effect of reducing the monthly installments. A percentage of VAT can be reclaimed on the monthly rentals depending on the usage of the car. Monthly payments are subject to VAT
BALANCED PAYMENTS
This financing package is treated in the same way as a HP structure, but with the difference being that while the monthly repayments remain fixed at what ever amount, the interest rate is variable .The interest is calculated daily using the Finance House Base Rate, (FHBR) if the rate has moved during the agreement term you either pay the difference or receive a credit .The rate is calculated at the end of each month by averaging the cost of three-month money in the interbank market over the previous eight weeks. The resulting figure is then rounded up to the next half point. The process is entirely arithmetical and contains no discretionary element. FHBR is calculated on the last Friday of each month and the resulting figure becomes effective from the first day of the following month. It is published daily in the financial press and remains unchanged until the calculation produces a different figure. This product is suitable for the purchase of luxury and high performance cars where the change cycle may be important to the client.
Not sure which car payment method is right for you? If you are a little unsure as to which method suits your requirements then simply contact us and we will be more than happy to advise you.
Comparison Table
| Contract Hire | Lease Purchase | Finance Lease | Personal Contract Purchase | Hire Purchase | |
| VAT recoverable on hire? | yes > | yes | yes > | yes | |
| VAT recovered by finance company on vehicle cost? | yes | yes | |||
| Fixed Budgeting? | yes | yes | yes | yes | yes |
| Low initial capital outlay? | yes | yes | yes | yes | yes |
| Improve cash flow? | yes | yes | yes | yes | yes |
| Fixed monthly cost? | yes | yes | yes | yes | yes |
| Capital allowances available? | yes | yes | |||
| Allowable against profits? | yes | yes | |||
| Ownership of vehicle? | yes | yes | yes | ||
| No depreciation risk? | yes | yes | |||
| No vehicle disposal risks? | yes | yes | |||
| Reduced Admin? | yes | yes | yes | yes | |
| Road Fund Licence Included? | yes | ||||
| Breakdown recovery? | yes | ||||
| Maintenance option available | yes | yes | |||
| VAT charged on maintenance? | yes | ||||
| VAT recoverable on maintenance? | yes |
> 50% of VAT recoverable if some private use; 100% if business use only
*Suitable for VAT registered business users
