FLEET & ASSET

Jigsaw founded a Fleet & Asset Department to provide specialist finance solutions to business customers and dealer fleet departments operating sales to the business community.

No one scenario is the same, so the highly experienced Staff is trained to provide a bespoke service to the customer based on the assets being purchased, the type of agreement that best suits their purpose and their financial position.



FLEET & ASSET PRODUCTS

Whether it is a Lease Product, Variable Interest Rate, Balanced Payments or Business/Personal Contract Hire the Fleet & Asset team can provide competitive quotations. Please contact the team on 0845 680 0111

Subsidiary Companies: Autogas Alliance

Finance Lease

With a leasing product, the finance company buys and owns the asset the customer requires. The customer then hires the asset from the finance company paying a rental over a pre-determined period. With a Finance Lease, the rental is structured to the customer's needs and covers the full cost of the equipment. This can also include maintenance if the lessee requires – inclusive in the rentals on certain types on equipment.

At the end of your lease agreement the customer has two attractive options, either continue to use the asset by simply paying a nominal rental, or sell it as our agent and benefit from a proportion of the sale proceeds. The rentals on a Finance Lease are 100% allowable against tax in most cases.

Benefits

  1. Low up-front costs - for just a small outlay, you can use the assets immediately
  2. Flexible repayment structure - rental payments can be tailored to match your cash flow
  3. Fixed or variable interest options - you decide which suits you best
  4. Tax advantages - VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit

Contract Hire

Contract Hire agreements typically offer a complete package including delivery, maintenance, service and repairs. This not only offers the lessee a worry-free upkeep of the asset throughout the term of the agreement, it also means they know exactly what the expense for that asset will be, there should not be any surprises. Qualifying agreements are treated as off-balance sheet which means that financial ratios such as gearing and liquidity are not adversely affected. In addition, in most cases, rentals are 100% allowable against tax.

At the end of the primary period of hire, the customer will have paid for the anticipated depreciation of the vehicle and all the interest charged. The vehicle is returned to the finance company and the lessee is not responsible for the sale of the vehicle. If the vehicle has exceeded the agreed mileage then a pence per mile charge plus VAT will apply to each mile over the contracted amount. If the vehicle has not been maintained or serviced according to the manufacturers recommendations, or if the condition is worse than `fair wear and tear`, the finance company is allowed to charge the customer to compensate for the poor condition. These charges are outlined to the customer in the terms and conditions of the agreement.

Benefits

  1. Fixed monthly payments - easier budgeting comes as standard
  2. Flexible agreement terms - variable terms and mileage available
  3. Vehicle maintenance option - include servicing and maintenance in your rentals to help spread the cost
  4. Eliminate risk of asset depreciation - at the end of the agreement, you simply hand back the vehicle, subject to return conditions and excess mileage

Finance Lease versus Contract Hire

A Finance Lease transfers the majority of the "risks and rewards" of ownership to the lessee/customer. There are two main differences between a Finance Lease and a Contract Hire.

Finance Lease can be structured with or without a balloon payment. However, a Contract Hire agreement always take into account a residual value set by the leasing company, but this residual value is not visible to the customer nor is it their responsibility.

The vehicle on a Finance Lease agreement is shown in the Balance Sheet of both the finance company and the customer as a leased asset. Under Contract Hire, it is only the finance company who lists the vehicle on their Balance Sheet.