Car Finance Myths Busted

You don’t need good credit when you lease as they don’t do a credit search All funding methods require a credit search, so if you have a poor credit history then expect a few hurdles during the finance application. Starting a Limited Company won’t help as any new business will likely need a director’s guarantee. You don’t need pay interest charges on a lease This is just not true; interest rates are very similar on all finance products however the cost of finance doesn’t legally have to be shown on a lease agreement, unlike on a Hire Purchase agreement where they are displayed clearly. Lease is better than HP because you can claim 100% of the rental against tax When financing a commercial vehicle, 100% of the cost and interest charges can be offset against tax. With leasing, the rentals are offset against tax in the year they are paid. With a Cash or Hire Purchase the total cost is offset in the year of purchase or depreciated over the term of the agreement. If you have any queries regarding finance please give us a call on 01446 502955.