Funding Options | Chorley Group
Next
Prev
Home Delivery or Click & Collect Choose your option, fully complying with government distancing guidelines
Order 100% From Your Home Simply reserve, buy outright or apply for finance
Fully Refundable Deposit If the vehicle you reserve with us isn’t for you, we will fully refund you your deposit

Car Funding Options

Description Advantages Disadvantages
Hire Purchase
  • The 'traditional' purchase option
  • Lump sum deposit (plus full VAT on LCVs)
  • Title passes to customer at the end
  • Simple
  • Eventual ownership
  • Asset on balance sheet
  • Inflexible
  • No VAT reclamation on cars
    (unless 100% business use)
  • Liability on balance sheet
Lease Purchase
  • 'Flexible' version of Hire Purchase
  • Optional Deferred Lump-sum (balloon)
  • Other characteristics as per Hire Purchase
  • Balloon reduces rental or shortens term
  • Asset of balance sheet
  • No VAT reclamation on cars
    (unless 100% business use)
  • Balloon must be settled on 'keep' the vehicle at the end of the contract
  • Liability on balance sheet
PCP
  • Similar to Lease Purchase with a balloon
  • Balloon (optional final) payment 'guaranteed'
  • Other characteristics as per Hire Purchase
  • Optional final payment - no disposal risk
  • Asset on balance sheet
  • Liability on balance sheet
Contract Hire
  • Simple way to pay for the use of a vehicle
  • Optional maintenance to help budgeting
  • VED included for full contract
  • No disposal risk (subject to condition and mileage)
  • Minimum cost for use of vehicle
  • Reduced hassle / admin
  • No disposal risk
  • Budgeting control (with maintenance)
  • VAT paid on rentals
  • 50% of VAT can be reclaimed on finance for cars (100% on maintenance)
  • Off balance sheet
  • No ownership option
  • Charges may apply if vehicle is in poor condition or has exceeded contract milage at the end of contract
  • Charges may apply in the event of the early termination of the agreement
Lease Hire/Finance Lease
  • Similar to Lease Purchase, but a 'lease'
  • Option balloon for flexibility
  • 'Secondary' contract period available
  • Can extend agreement for up to 5 years
  • Customer receives 100% of sales proceeds as 'rebate of rentals'
  • VAT paid on rentals - no large upfront VAT
  • 50% of VAT can be reclaimed on cars
  • End of contract flexibility - up to 5 years for only £50 + VAT per annum
  • On balance sheet
  • Not a purchase product (so acquisition does not qualify for Annual Investment Allowance)
  • Balloon must be paid before secondary contract period can be entered into
  • Liability on balance sheet