Leasing is a straightforward rental agreement with significant tax advantages, especially if your VAT registered. Finance companies are able to recover the VAT element on the cost of a new car, therefore passing the savings on to you in the form of lower monthly rentals. A proportion of your rentals are also allowable against tax.

There are two types of Leasing

Full Payout Leasing: You simply choose a leasing period, normally 36 months. Your initial deposit is low normally 3 rentals in advance followed by 35 rentals. As the interest rate applied to the lease is fixed at the outset, so are your monthly rentals, which should assist your budgeting.

Balloon Payout: With this type of leasing, the car's estimated resale value is taken into account when the rental payments are calculated, this estimated value is offset to the end of the agreement thus reducing your monthly rentals.

When your leasing agreement ends you must sell the vehicle to an unconnected third party. If you have chosen a balloon lease, any excess proceeds over and above the estimated resale value of the car will be returned to you as a refund on the rentals you have paid. If you have chosen a full payout leasing a refund of rentals is made, less a small administrative fee.

Benefits of Leasing:


Full use of vehicle without ownership. (The car is still classed as an asset and shown on the balance sheet, so improving the book or accounting value of the business).

A percentage of the VAT added to rentals can be reclaimed. (Reclaim 50%, which lowers the gross rentals cost).
VAT on cost of the car is recovered by finance company. (Benefits of a lower capital cost to the finance company is passed on to the customer in the form of lower monthly rentals i.e. the rentals are calculated on the net of VAT price).

Lease purchase is similar to hire purchase, but offers your business a number of advantages. Like hire purchase you pay low deposit then make the remaining payments at a fixed rate over an agreed period, usually two or three years.

However, with Lease Purchase you reduce your monthly payments significantly by choosing a final balloon payment. This balloon payment is based on the car's estimated resale value at the end of the agreement and is taken into account when the payments are calculated, making them lower than a traditional hire purchase agreement. When you pay the final balloon payment you complete the agreement and own the vehicle, which is yours to with as you wish.

Lease Purchase monthly rentals do not attract VAT, making this scheme particularly attractive to non-VAT registered businesses. All of the interest on your rentals is allowable against tax. Additionally, a proportion of the car's value can be written down against profits.

Benefits of Lease Purchase:


Lower monthly rentals.
Lower initial payments.
Improves cash flow.
Retains all the benefits of hire purchase.
Final payment made from sales proceeds.
No VAT on the rentals.

PCP is one of the most popular ways to purchase a car today. It allows you to drive the car of your choice at a very attractive, fixed monthly cost, with a low initial deposit.

The Company car Alternative: If you are a company car driver, PCP is a sensible alternative to the usual company car scheme because you can use your company car allowance to fund your PCP monthly payments without paying company car tax.

Monthly payments are fixed over the repayment period, normally two or three years. The scheme adapts to your individual needs giving you three options when the agreement ends:

OPTION 1
Your dealer will accept your car in part exchange for another vehicle. Any value over and above the optional final payment, as declared when you started the agreement, will be carried over towards your next vehicle as deposit.

OPTION 2
If you want you can keep the vehicle, by making the optional payment and the small option to purchase fee (Approx. £50).

OPTION 3
You can simply hand the vehicle back to the finance company or your dealer. Provided it is in good condition and you have not exceeded your agreed mileage, there is nothing more to pay.

Benefits of PCP:


Ownership.
Low initial deposit / flexible deposit term.
Fixed repayments.
Optional final payment.

Hire Purchase is a simple and effective way for private individuals and business to spread the cost of a New or Used car.

You simply pay a small deposit (10% to 20%) to suit your available capital, and then make monthly repayments over an agreed period of time (12/24/36/48/60 Months). Once all the payments have been made along with the option to purchase fee (Approx £50), then you will acquire title to the car.

If you are a business user, all of the interest on your payments is allowable against tax. Additionally a proportion of the car's value can be written down against your profits.

Benefits of Hire Purchase:



Ownership of the goods - control of usage and disposal.
Eases cash flow / budgeting & planning - known outlay that will not change.
Leaves other credit lines undisturbed.

Benefits for Business User:


Interest charges allowable against taxable profits - reduces tax bill.
Tax relief (capital allowances) - reduced tax bill.
Capital released - leaves money available to develop other parts of the business.

Freedom to Finance your Plans

A Personal Loan from Bank of Ireland gives you freedom to choose the loan that best suits your needs.

With interest rates from 9.9% APR, you can tailor the loan amount and repayment period to suit you.

Just take a look below at some of the benefits you can enjoy with a Bank of Ireland Personal loan


Competitive interest rates as low as 9.9% APR
You can borrow any amount from £1000 - £25,000 over 1 – 5 years
Option to take a payment break for 1 or 2 payments a year
Low cost payment protection, giving you peace of mind
No early settlement charge
Simple application process by phone, post or internet
Click here to take a look at our repayments table to help you decide on the right repayment amount for you or call us now on 020 7350 2811 for more information on a loan amount to suit you.

As a typical example if you were to borrow £10,000 over 60 months you would pay total interest of £2,600 giving a total amount repayable of £12,600. APR 9.9%. This excludes payment protection insurance. Payments are shown for illustration purposes only and may vary slightly due to rounding. Rates correct at time of going to print May 2001. Personal loans are provided by Bank of Ireland Personal Finance Ltd., a wholly owned subsidiary of the Bank of Ireland Group. Registered Office, 36 Queen Street, London, EC4R 1HJ.
All loans subject to status. Applicants must be aged 18 years or over. Written quotations available on request.

Calls to Bank of Ireland Personal Finance Ltd may be recorded for training and monitoring purposes and to improve our service to you.

Payment Protection Cover is issued by Prisma Insurance Management Service Limited and underwritten by Financial Insurance Company Limited, member companies of Consolidated Financial Insurance, Vantage West, Great West Road, Brentford Middlesex.

Payment Protection Cover
For just a little bit extra a month, you can ensure that your repayments are protected against accident, redundancy or death (hospitalisation in place of redundancy if you are self-employed). To qualify for payment protection you must be over 18 and under 65 years old and have been working for 6 months. The cover will not pay if you knew you were ill or likely to be made redundant in the 12 months prior to the cover starting. A copy of your loan Payment Protection Policy including full terms and conditions will be sent to you when we confirm your application.
We strongly recommend that you avail of this competitive loan payment protection and the peace of mind it provides you with.

Payment Break
When you arrange your personal loan, you’ll have the flexibility to spread your repayments over 10,11 or 12 months annually. This gives you a great opportunity to enjoy a break from your repayments each year.
With the exception of your first repayment, the months you choose to pay are entirely up to you. All we ask is that you specify that you wish to avail of a payment break when applying for your loan. No administration charge is made for this facility.