Toyota Yaris Cross SUV 1.5 Hybrid Icon 5dr CVT

A finance lease is suitable for all business entities and offers the same benefits as contract hire, including VAT and tax relief. This product is extremely flexible and is particularly popular among companies looking to lease commercial vehicles.

Hire Purchase is similar to Lease Purchase but does not include a residual value, resulting in higher monthly payments. The vehicle is paid off in full at the end of the contract. The tax and VAT benefits are as follows: For electric and commercial vehicles, tax relief is based on the asset cost and can be written down over 12 months, with VAT only reclaimable on commercial vehicles and paid upfront on the asset. In contrast, tax relief for combustion engine cars is significantly lower, dropping to as low as 6%, with no balancing allowance available.

Lease Purchase is similar to Hire Purchase but includes a residual value to reduce monthly payments. For electric and commercial vehicles, tax relief is based on the asset cost and can be written down over 12 months. VAT can only be reclaimed on a commercial vehicle and must be paid upfront on the asset. In contrast, tax relief for combustion engine cars is significantly lower, dropping to as low as 6%, with no balancing allowance available.

Personal Contract Purchase (PCP) provides all the same benefits as Personal Contract Hire (PCH), except for the Road Fund License (RFL) and luxury tax, (this is only included for the first 12 months). Additionally, PCP allows you the option to buy the vehicle at the end of the agreement(and mid- term). If your PCP is a true PCP regulated by the Consumer Credit Directive, you will also benefit from the halves and thirds rule, offering extra flexibility throughout the agreement. Moreover, PCP allows you to finance used vehicles, which many Contract Hire companies do not offer.