Once you have chosen the vehicle you want or designed your fleet policy, choosing the right finance product is the next vital component to ensure your deal best meets your needs. Our explanations below should help, but we’d love the chance to personally guide you through the options, so why not get in touch?
A simple and cost effective way to fund any number of vehicles.
Contract hire is a popular funding option to finance fleets of all shapes and sizes. You lease the vehicles required from your lease provider for a fixed monthly rental over a fixed term, usually 2-5 years and for an agreed contractual mileage. At the end of the term you return the vehicles and providing there is no excess mileage or damage to the vehicles there is nothing further to pay. You can also include a maintenance contract over the same period, paying a fixed monthly amount to cover servicing, tyre replacement, maintenance and repair costs.
Funding by contract hire means you are not exposed to losses on resale as the residual value risk sits with the lease provider. Therefore, your costs are fixed over the contract term (subject to excess mileage and end of contract damage charges) allowing you to budget effectively. All you need to decide is the length of the contract and expected mileage and we will look after the rest.
At Bowater Price, we go the extra mile to make sure your fleet is just right for your business. With all Contract Hire vehicles – both cars and vans – you can take advantage of our useful extra services, all designed to take the hassle out of fleet management. Some of the services we offer are:
Each funding option is designed to cater for different, specific fleet needs.
Although a simple concept in principle, fleet funding can be a minefield if you’re not properly prepared. With so many companies, deals and advice out there in the market, it’s easy to get confused about which option is best for your business.
The type of funding you choose can make a significant difference to your overall costs, risk and flexibility – so it’s crucial to understand everything properly before making your decision.
Bowater Price can help you understand more about the impact of the various funding options available to you and can help identify the most appropriate funding method for your needs.
A simple and cost effective way for businesses to purchase vehicles.
Contract Purchase gives you the flexibility to spread the cost of a new vehicle over a pre-determined period, usually 2 – 5 years, after which you have the option to own the vehicle outright or return it to the finance company.
Contract Purchase is an on-balance sheet method of funding.
Simply choose your vehicles and the finance company will buy them. You then pay a fixed monthly sum for the duration of your agreed loan period. At the end of this term, you’ll have the option to purchase each vehicle by making a final ‘balloon’ payment based on its residual value. Alternatively, you can agree to return the vehicle without the need to make a “balloon” payment and provided there is no excess mileage or damage to the vehicle there is nothing further to pay.
Contract purchase agreements usually have the option to include maintenance giving you peace of mind that both finance and maintenance costs are fixed throughout the duration of the contract.
As with many of our funding methods you can benefit from our purchasing power and industry experience to make sure you are running your fleet as effectively as possible. Contract Purchase offers on balance sheet funding while removing the uncertainty of residual value fluctuations.
Each funding option is designed to cater for different, specific fleet needs.
Although a simple concept in principle, fleet funding can be a minefield if you’re not properly prepared. With so many companies, deals and advice out there in the market, it’s easy to get confused about which option is best for your business.
The type of funding you choose can make a significant difference to your overall costs, risk and flexibility – so it’s crucial to understand everything properly before making your decision.
Bowater Price can help you understand more about the impact of the various funding options available to you and can help identify the most appropriate funding method for your needs.
A flexible form of fleet funding for all businesses.
Finance lease is a method of funding that allows you to use a vehicle without taking ownership. You are charged rentals throughout the contract period, usually 2 – 5 years, based on the purchase price and estimated residual value. At the end of the agreed rental period, you can continue to use the vehicle on an informal extension basis in return for additional rental payments.
The depreciation element of the rental will then be used to further reduce the vehicles estimated sale value. If the resale value exceeds the estimated residual value you will be rebated the difference (taking into account disposal costs), however if the resale value is less then you will need to pay the lease provider the difference.
As you take the residual value risk, you will account for finance lease contracts as fixed assets which are recorded on your balance sheet.
Finance lease is often suitable for organisations used to outright purchasing who want to consider the funding benefits of leasing but who are comfortable taking the residual value risk on resale and therefore do not want to contract hire their vehicles.
Each funding option is designed to cater for different, specific fleet needs.
Although a simple concept in principle, fleet funding can be a minefield if you're not properly prepared. With so many companies, deals and advice out there in the market, it's easy to get confused about which option is best for your business.
The type of funding you choose can make a significant difference to your overall costs, risk and flexibility – so it's crucial to understand everything properly before making your decision.
Bowater Price can help you understand more about the impact of the various funding options available to you and can help identify the most appropriate funding method for your needs.