Business Finance

When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.

Contract Hire

Contract Hire is Lease agreement but it differs from a normal lease agreement in that it includes an arrangement agreed at the outset whereby the vehicle is returned to Mc Coy Motors Ltd. 
The rentals payable by a business during the Hire period are usually lower than those payable under a standard Finance Lease because the value of the vehicle at the end of the term is taken into account. Similar to a standard Finance Lease, rentals payable under Contract Hire are allowable against tax (subject to current legislation and Revenue limits)

Contract Hire is suitable for most Toyota business vehicles including cars, delivery vans and other Toyota commercial vehicles.

Lending criteria, terms and conditions apply

Benefits of Contract Hire.

Under this type of Lease agreement a business can derive benefit both from a financial and an operating perspective.

The Financial features include :

1.     The possibility of achieving "Off Balance Sheet" status of the financing arrangement with a possible resultant gearing enhancement and improved return on capital employed.

2.     Fixed rentals allow accurate budgeting and forecasting and are a protection against interest rate fluctuations.

3.     Lease rentals are deductible for tax purposes (subject to current legislation).

Operating features include :

1.     Vehicle maintenance can be included in the Lease Contract, thereby greatly simplifying budgeting and fleet running costs.

2.     Residual and disposal values risks are eliminated.
Click here to contact our Business Manager who can assist you with any of your finance enquiries.(with link to .(JavaScript must be enabled to view this email address))

Hire Purchase for Business

Hire Purchase is a finance agreement whereby your chosen vehicles are purchased, on your behalf, by Toyota Finance* and hired to you / the business, for a pre agreed term. (Usually 3-5 years)

With Hire Purchase, the cost of the vehicle(s) together with the interest cost for the chosen period is repayable by fixed monthly installments.

For business and taxation purposes, vehicles acquired under a Hire Purchase arrangement are treated as fixed assets. Capital allowances therefore may be claimed at 12.5% per annum, however this is subject to a limit per vehicle (saloon cars),currently set by the Revenue at €22,000.The interest cost may also be written off over the term of the agreement, however this is subject to apportionment where the cost of the vehicle exceeds the Revenue limit.

With Hire Purchase, you may also defer a portion of the capital cost until the end of the agreement at which stage you then pay a final "balloon" payment. Upon completion of the Hire term you can obtain full ownership of the vehicle (s) on payment of a small 'purchase fee. (€63.49)

Benefits of Hire Purchase.

- The product is a straightforward one with no tax implications on completion of the agreement.

- Fixed installments provide for more accurate budgeting and forecasting

- Funding vehicles by way of a separate line of credit leaves working capital free to be used where it is needed most - in the business.

- As well as preserving valuable working capital, Hire Purchase can provide more accurate cash- flow management and control.

- The paperwork is straightforward and simple to complete allowing you to take delivery of your brand new Toyota with a minimum of fuss.

*Lending criteria and terms and conditions apply. The credit provider is Bank of Ireland Finance. Bank of Ireland Finance is a registered trading name of Bank of Ireland. Bank of Ireland is regulated by the Central Bank of Ireland.

Click Here to contact our Business Manager who can assist you with any of your finance enquiries.