Renault Business Finance Explained

Contract Hire

Contract Hire is an ideal product for companies who don't want the financial risk of running their own car and van fleets, and who want to reduce the administrative load of buying, servicing and disposing of their company vehicles.

ADVANCE RENTAL

Step 1.

You pay the advanced rental ranging from 3 to 12 months upfront.​

BALANCE TO FUND

Step 2.

Fixed monthly rental for the duration of your contract.​

AT THE END

Step 3.

At the end of your agreement, you simply return the vehicle back to us.

The benefits of Renault Contract Hire:

  • Road fund licence included.
  • Flexibility to increase your contract term and mileage.
  • Optional servicing, maintenance and tyre options bring all running costs into one package.
  • The reduced VAT paid by the business, as monthly vehicle payments.
  • can be offset against taxable profits.
  • Vehicles on Contract Hire are classified as ‘off-balance sheet’ and therefore has accounting benefits by improving the financial ratios for the business.
  • VAT registered businesses are able to claim 100% of the VAT back if the vehicle is used exclusively for business.
  • If vehicle used privately, 50% of the VAT can be reclaimed on the finance of the rental.

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Hire Purchase

DEPOSIT

Step 1.

You tell us how much deposit you would like to pay.

BALANCE TO FUND

Step 2.

Our team will calculate your monthly payment based on the remaining amount to be financed on the vehicle. At the end of your agreement, you pay the Option to Purchase Fee, and ownership of the Renault is transferred to you at the end of your agreement.

The benefits of Renault Hire Purchase:

  • Flexible initial payment
  • Flexible payment terms (1 to 4 years)
  • Fixed repayments
  • Fixed interest rate
  • No mileage restrictions
  • Fixed repayments not subject to VAT

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Finance Lease

The business finance option with flexible end of contract options​. Finance lease has many of the benefits of Contract Hire without the perceived inflexibility.

DEPOSIT

Step 1.

You tell us how much deposit you would like to pay.

BALANCE TO FUND

Step 2.

Your salesperson will calculate your monthly payment based on the remaining amount to be financed on the vehicle.

WHAT HAPPENS AT THE END OF MY CONTRACT?

You will get three choices when your Renault Selections agreement comes to an end:

SELECTION 1 - SELL THE VEHICLE

We'll forward your share of the balance of proceeds to you once anything owed to us, including any sell-on expenses have been settled.

SELECTION 2 - RETURN YOUR RENAULT

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.

SELECTION 3 - KEEP YOUR VEHICLE

If you want to continue to use the vehicle you can pay a nominal fee (usually one month's rental) and carry on driving for the whole of the following year.

The benefits of Renault Finance Lease

  • Has the benefits of ownership without being the real owner.
  • Can offset the whole rental amount against taxable income.
  • No mileage restriction.
  • Monthly rentals are fixed but there's flexibility through variable deposit options.
  • Ability to offset a proportion of the vehicle cost as a final ‘balloon payment’.
  • Reduced monthly rentals result in a positive effect on your cash flow. 
  • Possibility of reclaiming tax relief on Renault Finance Lease rentals depending on business usage (50% VAT reclaimable on cars, 100% reclaimable on LCVs).

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FINANCE LEASE

The business finance option with the flexible balloon repayment option​. 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.

DEPOSIT

Step 1.

You tell us how much deposit you would like to pay.

BALANCE TO FUND

Step 2.

Our team will calculate your monthly payment based on the remaining amount to be financed, the agreed contract period and the agreed balloon payment to be paid at the end of the agreement.

BALLOON PAYMENT

Step 3.

Making a balloon payment at the end of your agreement allows to reduce the monthly payments during the agreement. When the balloon is paid, ownership of the vehicle is transferred to you.

The benefits of Renault 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 fixed interest to control your costs.
  • Same tax benefits as Hire Purchase (see Hire Purchase section for more details).

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