The methods of financing a vehicle purchase are varied and advice from an good broker or specialist who can explain the method best suited your or your business circumstances is essential.

We have provided below a brief summary of the various methods. However we do stress that it is essential that you consult with a professional before entering into any contract.

• Business Contract Hire
• Lease Purchase
• Finance Lease
• Personal Contract Hire (PCH)
• Contract Purchase
• Personal Contract Purchase (PCP)
• Hire Purchase

The BVRLA (British Vehicle Rental and Leasing Association) publises several useul guides and information leaflets. There consumer Guide to leasing and vehicle hire is available here:
http://www.bvrla.co.uk/public/Renting_a_Vehicle/consumer_guide.cfm

Returning the vehicle at the end of a rental or leasing contract.
Order a copy of the BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear Guide before the end of your lease.

The aim of the guide is ‘to provide an industry-wide, accepted standard as to what constitutes fair wear and tear for contract hired and leased vehicles on their return’.

Every year the car leasing market faces a £120m bill for end of contract penalty charges. A large chunk of this is for excessive wear and tear.

Lease-end penalty charges are most commonly for:

• stains, rips, tears and burns on seats
• scratched or scuffed paintwork
• chips and dents on the bodywork
• damage to wheels and trims.