Capitas Finance | Vehicles

Vehicles

Stay mobile with Capitas

Whether you’re a business user requiring a company car to keep external business appointments, commercial vehicles to deliver goods or transport equipment, or you want to keep an entire company on the move with a fleet of vehicles: Capitas is involved in the funding, management and supply of vehicles. From passenger cars to commercial vehicles, we provide choice, quality and genuine personal service at every turn.

Alternatively, you may be a private individual with an eye on a particular model. No matter what type of finance product you want, Capitas will be able to provide you with a personalised quote that can meet your budgetary and vehicle needs.

With a variety of finance plans, we aim to make vehicle finance readily accessible to you. Our knowledgeable specialists will match your requirements to the most appropriate product; provide you with quotations and rapid processing of your application.

Vehicle finance from Capitas is a strategy for gaining a variety of benefits:

• Access to a highly experienced and knowledgeable team
• Funding for both business users and private individuals
• Rate competitiveness and consistency
• Finance for both new and used vehicles
• Personal and professional service
• Tailored solution to suit your needs

Personal Contract Purchase

The flexible alternative 

Personal Contract Purchase (PCP) is ideal if you want to renew your car more often, as it offers flexibility at the end of the agreement, together with low, fixed monthly payments. At the beginning of the agreement your car’s guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final ‘balloon’ payment. With PCP you don’t have to commit to buying the car at the outset. You use it for an agreed term and then decide at the end of this period what you would like to do. You have four options:

1. Purchase the car by paying an agreed guaranteed future value
2. Part-exchange the vehicle for another
3. Sell the vehicle privately (settling the balloon)
4. Or, subject to mileage and condition, return the car with nothing more to pay; for example, if depreciation resulted in negative equity 

Key features and benefits of PCP:

• Low risk – a guaranteed future value is agreed
• Low deposit – keeps valuable personal cash available
• Low fixed monthly payments – makes budgeting easier
• Choice – buy the car, part-exchange it or simply return it at end of term
• Acquire a better car – lower payments help you choose a higher specification car
• Tax advantage – the cash alternative when you opt out of a company car scheme is not subject to company car tax

Hire Purchase with Balloon

The simplicity of Hire Purchase, but with reduced regular payments

Hire Purchase (HP) with a balloon offers lower monthly payments than normal HP. Instead, at the end of the agreement, you can make a final lump sum payment (known as the ‘balloon’) to own your car. It’s fixed rate finance - but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement options include car purchase, refinance, part exchange or resale. The deposit you pay is flexible - typically between 10-50% of the vehicle cost. The deferred balloon element is calculated on the estimated future resale value of the car. The difference, plus fixed interest, is repaid in equal instalments over an agreed period, plus a final balloon payment.

Key features and benefits of HP with Balloon:

• Low deposit – keeps valuable personal cash available
• Lower fixed monthly payments – perfect for budgeting
• A better car – lower payments help you choose a higher specification car
• Flexibility – does not compromise your other lines of credit
• Assets – you gain vehicle ownership

Hire Purchase

What could be easier?

The simple straightforward method of paying for your car allows you to organise finance over one to five years. You choose the amount of deposit you wish to pay, typically between 10-50% of the car’s cost. The balance is repaid over the term of the agreement. You have a fixed rate of interest with fixed monthly payments, making budgeting simple and easy. And at the end of the agreement, once you have made all your payments, you own the vehicle. What could be easier?

Key features and benefits of Hire Purchase:

• Low deposit – retains valuable personal cash
• Control – you decide the deposit, you decide the term
• Fixed monthly payment – makes budgeting simple
• Flexibility – doesn’t compromise your other lines of credit

Hire Purchase is perfect if you are opting out of your company car scheme. Your company car allowance can fund your monthly payments, but there is no company car tax to pay.

Benefits of Capitas

Finance as precisely engineered as your vehicle

Capitas provides choice, quality and genuine personal service at every turn. We pride ourselves on our automotive market knowledge and have extensive vehicle finance solutions that can fulfil your requirements. No matter what facility you want, Capitas will be able to provide you with a personalised quote that can meet your budgetary and vehicle financing needs.

Why you should choose Capitas as your vehicle financing partner?

Simply, it’s because we offer you:

• Sound financial advice: We’ll help you manage risks before they become liabilities, including the residual value position
• Tailored solutions: We’ll fix your agreement around your budget, providing affordable finance
• A pleasing experience: We’ve simplified the entire financing process, from vehicle acquisition through to disposal if required
• Relationship management: We’re a proven partner, dedicated to your success across not just the lifecycle of your vehicle investment(s) but the lifetime of our relationship
• Fit for purpose financing: Where ownership isn’t appropriate, we’ll provide options for the best lease or contract hire solution for you to choose from

Fleet Management

Capitas can provide an extensive range of fleet management services

Capitas can provide an extensive range of management services to organisations that prefer ownership or other financing solutions as opposed to Contract Hire or Contract Purchase. Effectively, you elect to take on the complete financial risk associated with ownership of the fleet including asset and maintenance risk. The administrative functions are outsourced. A fleet management fee is charged per vehicle per month, with fleet costs charged back to the company on an actual cost basis.

Key features and benefits of Fleet Management:

• Reduced administration and improved control
• Access to established vehicle acquisition channels
• Access to technical expertise for repair authorisation
• Independent advice for repair and sale
• Floor limits for authorisations creating cost control
• Consolidated invoicing and reporting
• Access to established vehicle disposal channels

The true figures for the cost of buying, financing, maintaining and disposing of vehicles can be difficult to evaluate. Capitas can help with this and also offer related services such as relief vehicles during repairs, accident management, roadside assistance, and fuel cards.

Contract Hire

For businesses who prefer to hire rather than buy

If your business prefers to hire rather than own vehicles this could be the solution. Contract Hire enables you to concentrate on your core business activities, while avoiding the financial risk and administrative burden of owning a vehicle fleet. With payments over one, two, three or four years, you get to drive your chosen vehicle without ever having to consider its future value or how to dispose of it.

Key features and benefits of Contract Hire: 

• Fixed rentals for the life of the agreement, ensuring easier budgeting
• Flexible terms with variable mileage and contract duration
• Maintenance of vehicles can be included within the periodic rentals spreading the cost
• Contract hire removes depreciating assets from the balance sheet and the associated risks of owning vehicles
• Flexible invoice arrangements reduce administration

Contract Purchase

The flexible alternative

Companies who want to own their vehicles, but avoid the risk of depreciating assets often prefer Contract Purchase. This method of funding is ideal if you cannot fully reclaim VAT and is particularly suitable for financing the more prestige vehicles on the fleet. You have the option to purchase the vehicle at the end of the contract period. Alternatively, you can return the vehicle.

Key features and benefits of Contract Purchase:

• Fixed monthly payment encompasses the value of the car, depreciation rate, contract term, mileage and any additional services you may wish to build in
• Maintenance and value added services can be included
• Capitas will guarantee the resale value of the vehicle at the end of the contract purchase agreement for a known fixed amount
• Choose to include maintenance cover with full breakdown and recovery service; keeping drivers on the road without involving the company in complex or expensive administration

Finance Lease

All the benefits of ownership without the burden

If your business is registered for VAT, there may be good financial reasons why leasing is for you. You retain full use of a vehicle for an agreed period of time for an agreed periodic rental. Leasing offers all the practical benefits of ownership without any of the potential burdens.

Key features and benefits of Leasing:

• Working capital preserved – payments spread over the life of the asset
• Allows vehicles to be updated as old ones need replacing
• Fixed monthly costs for greater control of cash flow
• Rentals may be offset against your taxable profits subject to HMRC rules
• Rentals attract VAT, of which up to 50% can be reclaimed

Sale and Leaseback

Enjoy the benefit of releasing funds

Purchasing a vehicle fleet ties up valuable cash resource at the front end and involves the risk of unpredictable resale values at the back end. By selling the fleet and leasing it back, your company will benefit from fixed a monthly cost – which means you can budget more effectively.

Key features and benefits of Sale & Leaseback:

• Vehicles purchased for cash by Capitas in a simple paper transaction
• Cash injection into other areas of your business
• Improves various gearing ratios
• New for old - with sale & leaseback you can benefit from our disposal routes to release the cash value of the vehicles replacing them with new vehicles under contract hire from Capitas

Balanced Payments Plan

Hire Purchase with a difference

Balanced Payments Plan is a finance option with the advantage of fixed monthly payments. However, unlike Hire Purchase, where the interest is fixed, Balanced Payments Plan tracks changes in the Base Rate. As rates fall or rise over the period of the contract, so does the interest you pay.

You pay an initial deposit, and repay the balance in fixed monthly payments over an agreed period. At the end of the term any variation of interest is reconciled and will be settled as either a credit to you, or a charge. Alternatively, the term can be shortened or extended. Other options available with Balanced Payment Plan include a deferred final ‘balloon’ payment, or settling your agreement early with a lump sum payment.

Key features and benefits of Balanced Payment Plan:

• Low deposit – cash can be used to drive other areas of the business operation
• Flexibility – optional lump sum payments
• Competitive – low cost options for early termination
• Fixed monthly payment – perfect for budgeting

Benefits of Capitas

Finance is just the beginning

No matter what facility you want, Capitas can provide choice, quality and genuine personal service at every turn. We pride ourselves on our vehicle finance knowledge and have extensive financial solutions that can fulfil your business requirements.

Why should you choose Capitas as your vehicle financing partner? 

Simply, it’s because we offer you:

• Sound financial advice: We’ll help you manage risks before they become liabilities, including the residual value position
• Tailored solutions: We’ll fix payments around contracts or forecast profitability, providing affordable finance for the best vehicles for the job
• A pleasing experience: We’ve simplified the entire financing process, from vehicle acquisition through to disposal if required
• Relationship management: We’re a proven partner, dedicated to your success across not just the lifecycle of your vehicle investments but the lifetime of our relationship
• Fit for purpose financing: Where ownership isn’t appropriate, we’ll provide options for the best lease or contract hire solution for you to choose from

Hire Purchase

What could be easier?

Hire Purchase is a straightforward repayment facility which enables you to ultimately own the asset. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of periodic instalments over one year to five years. You may also delay paying some of the car’s cost until the end of the agreement by structuring a balloon payment. 

Key features and benefits of Hire Purchase:

• With ownership you have total control over the asset
• Ownership normally carries the potential for claiming writing down allowances and/or capital grants, including any enhanced first year allowances
• Fixed or variable interest rate – you make your own assessment and choose accordingly
• The asset appears on your balance sheet