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Lincoln - Outer Circle Rd
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Renault Van Finance

Commercial Vehicle And Local Business Finance At Pentagon

At Pentagon, we offer a wide range of options to make it easy for you to get the van on finance you need.

Check out our simple guide to learn how each option works and their benefits.

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Van Finance Differences At a Glance

	Business Contract Purchase	Hire Purchase	Finance Lease	Contract Hire
Low initial deposit	OPTIONAL	OPTIONAL	OPTIONAL	YES
Fixed monthly payments / rentals	YES	YES	YES	YES
Ownership at the end of the agreement	OPTIONAL	YES	NO	NO
Postpone a 'balloon' payment to the end of the agreement	YES	NO	YES	NO
Guaranteed Minimum Future Value	NO	NO	NO	NO
No disposal uncertainty	YES	NO	NO	YES
No depreciation risk	YES	NO	NO	YES

How to get a Van on Finance
Hire Purchase (Traditional Finance)

In Brief – Choose this and you’ll benefit from a regular payment structure with outright ownership of your vehicle at the end of the term.

How It Works - Hire Purchase finance usually suits the buyer who intends on keeping the vehicle for longer than the term of the loan. Your deposit is deducted from the total cash price of the vehicle to give a balance that requires financing. Interest is then added and the total of the balance and interest is repaid in equal installments throughout the life of the loan via monthly repayments, usually over a 2, 3, 4 or 5-year agreement (whichever you prefer).

This is the simplest and most popular method of buying a vehicle with finance. After you've made your final payment at the end of your agreement, the vehicle is yours.
Why Choose Hire Purchase Van Finance
- Fixed regular repayments.
- At the beginning of the agreement, both the amount you will pay every month and the repayment period and interest rate is fixed and will not change.
- Even if other interest rates go up, the interest rate on your finance repayments will not be affected.
- Choose the length of the repayment period to suit your budget. You can choose between 24 and 60 months, it's entirely up to you.
- Low or no deposit.
- At the end of the agreement you own the vehicle.
- Interest charges are allowable against tax.
- A proportion of the vehicles value can be written down each year against your business’s profits because it is an asset on your balance sheet (CO2 based).
Van Contract Purchase (PCP or Low Plan Payment)

In Brief – With a Contract Purchase Plan you normally make lower fixed payments every month than you would with other options and the future value of your vehicle is guaranteed.

How It Works - Simply choose your vehicle the deposit you want to pay. Then you estimate your annual mileage and decide on how long you want to keep your van.

Based on your chosen vehicle, the contract term and the estimated mileage, we'll calculate the Guaranteed Minimum Future Value (GMFV) of your vehicle at the end of your agreement. The GMFV is deferred to the end of the agreement and is the optional final payment.

Because the GMFV and the initial deposit are deducted from the price of the vehicle, you make lower monthly payments based on the remaining balance, plus the agreement interest.

At the end of the agreement, you have 3 choices:

Choose another vehicle and use any excess value from the GMFV towards your deposit. You can trade in your old vehicle or choose to sell it privately.
If you want to keep the vehicle, you only need pay the GMFV and it’s yours.
Simply return your vehicle in a reasonable condition and within the agreed mileage with nothing more to pay.
Features And Benefits
- Fixed payments allows for sensible budgeting
- Your monthly payments are generally lower than they would be using other finance plans because the GMFV is deferred.
- Because the vehicle has a Guaranteed Minimum Future Value you are protected against any future fall in used vehicle values
- You choose the deposit, annual mileage and agreement term to suit you in advance.
- Interest charges are allowable against tax
- A proportion of the vehicles value can be written down against your businesses profits because it is an asset on your balance sheet (CO2 based).
Contract Hire

In Brief - It is an efficient way of funding the use of a vehicle without the cost of ownership. You benefit from being able to choose a low initial deposit, regular fixed monthly rentals and no worries about what to do with your vehicle at the end of the contract.

How It Works – Contract Hire for business is a tax efficient way of funding a business vehicle. This is because the monthly payments can be offset against taxable profits. The amount that can be offset is dependant upon the new retail price of the vehicle (please contact us for further details).

If your business is VAT registered, 100% of the VAT payable on the finance element of the monthly payments can be recovered where the vehicle is either a van or a car used solely for business purposes. Where the vehicle is a car used for business and private mileage, then only 50% of the VAT payable on the finance may be recovered.

You can also include a maintenance package within the monthly payments. This covers regular servicing costs and can also cover the costs of general wear and tear, making budgeting even easier.
Features and Benefits
- You choose the vehicle you wish to drive, agree your annual mileage and decide your hire period of between 24 and 60 months.
- Payments are lower as they are calculated on the VAT exclusive price of the car
- VAT registered businesses can reclaim a portion of the VAT paid on rentals, and all of the VAT paid on optional maintenance rentals
- Low initial outlay and regular rentals for easy budgeting
- Road Fund Licence is included for the duration of the contract
- By adding an optional maintenance package you can combine all your running costs together in a single monthly payment
- No worries about the possible future value of the vehicle as you simply hand it back at the end of the contract.
Private drivers can also benefit from a contact hire vehicle. The advantages are that once you have agreed an initial deposit and the monthly installments, the only extra you have to pay for is the fuel and vehicle insurance.

Regular maintenance can also be included in the monthly payment. At the end of the agreement you simply hand the vehicle back. Drivers also benefit because the finance is charged on the VAT exclusive price of new and qualifying used cars.
Finance Lease

In Brief – If your business is looking for a flexible way to finance a vehicle that combines a minimum initial outlay with maximum tax efficiency then this could be your best option.

How it works - Although the business will never actually own the vehicle, finance leasing allows many of the benefits associated with ownership available to the business while at the same time offering significant tax advantages.

You choose the term and the deposit and your monthly payments are then calculated based on the VAT exclusive price of the vehicle you want. During the agreement period 100% of the VAT payable on the finance element of the monthly payments may be recovered (assuming the business is registered for VAT) where the vehicle is either a van or a car used solely for business purposes. Where the vehicle is a car used for business and private mileage only 50% of the VAT payable on the finance may be recovered.

For the duration of the agreement the vehicle will be shown as a 'leased asset' within your balance sheet. The monthly payments are treated as a revenue expense and so can be offset against any taxable profits. Furthermore, the monthly payments can be tailored to match the cash flow of the business, with a “balloon” rental being used to defer part of the vehicles initial cost.

At the end of the agreement period, the vehicle is normally sold and the proceeds used to pay off the “balloon” payment that was agreed at the outset. If, following the sale there is a shortfall, then the leasee must make up the shortfall. If, however the amount raised from the sale of the vehicle exceeds the "balloon" amount then the excess will be refunded as rebate of rentals. Alternatively, in some circumstances you can choose to extend the rental of the vehicle – this is commonly referred to as a 'peppercorn' rental.
Features and Benefits
- You choose the vehicle you wish to drive and the lease period, normally between 12 and 60 months.
- Payments are lower as they are calculated on the VAT exclusive price of the vehicle
- VAT registered businesses can reclaim a portion of the VAT paid on rentals, and all of the VAT paid on optional maintenance rentals
- The monthly payments can be offset against taxable profits, improving cash flow.
- The vehicle can be shown as an asset on the balance sheet.
- Where the sale of the vehicle at the end of the agreement exceeds the ‘balloon’ amount, the difference is returned as a rebate.
- By adding an optional maintenance package you can combine all your running costs together in a single monthly payment.
If you have any questions about any of our financial services please contact your local dealership where a business funding specialist will be happy to explore the best options for your circumstances.
VAT Assist - Van Now, Pay The VAT Later

Claim the VAT back through your quarterly return before you pay it with VAT Assist from Pentagon.

Every effort has been taken to ensure the accuracy of the above information. We would advise you to also seek independent advice. Business users only. Finance is subject to status. Conditions apply.

Locations

Please contact us if you require additional information.

Pentagon Renault Lincoln - Outer Circle Rd

Outer Circle Road
Lincoln Lincolnshire
LN2 4LD

Pentagon

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Representative Finance Example

APR Representative 7%

Cash Price £8,995

Deposit £169.00

1st Monthly Payment £318.65

58 Monthly Payment £168.65

Final Monthly Payment £318.65

Amount of Credit £8,826.00

Total Amount Payable £10,558.00

Total Charge for Credit £1,293.00

Fixed Interest per Annum 2.93%

Duration 60 Months

© 2020 Pentagon Motor Group is a division of Motus Group (UK) Limited
© 21st Century Internet Ltd

© Pentagon Motor Group is a division of Motus Group (UK) Limited. Motus, Oakingham House, Ground Floor, West Wing, London Road, Loudwater, High Wycombe, Bucks, HP11 1JU. Registered in England and Wales, Number: 653665. VAT Registration Number: GB880984866. ICO Data Protection Registration Number: Z6033829.

Representative Hire Purchase Finance Example
Cash Price	Deposit	1st Monthly Payment	58 Monthly Payment	Final Monthly Payment	Amount Of Credit	Total Amount Payable	Total Charge For Credit	Fixed Rate Of Interest Per Annum	Duration
£8,995	£169.00	£318.65	£168.65	£318.65	£8,826.00	£10,558.00	£1,293.00	2.93%	60 Months
7% APR Representative

First payment includes a £150 initial acceptance fee and final payment includes a £150 option to purchase fee. Pentagon is a credit broker and not a lender. The APR in this example is representative for the whole website and includes manufacturer supported offers and standard finance rates. At least 51% of customers agreements arranged through Pentagon are at or below the representative APR shown.

Selected new car and van prices shown may apply to pre-registered vehicles in stock with delivery miles only. Demonstrator vehicles may show an estimated mileage based on the age of the vehicle as they are still in use. Although we aim for this to be accurate within the last 31 days, please check with the dealership before considering your purchase.

Pentagon Motor Group is a division of Motus Group (UK) Limited which is authorised and regulated by the Financial Conduct Authority to act as a credit broker and not a lender (FCA number is 680108), sourcing credit to assist our customers purchases from a carefully selected panel of lenders. For a list of these lenders please click here. Lenders may pay us a fee for these introductions. A guarantor may be required. If you choose vehicle finance you will not own the vehicle until all payments are made. Applicants must be 18 years or over. Finance acceptance and interest rate is subject to status.

For the sale of general insurance Motus Group (UK) Ltd is an Appointed Representative of Automotive Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Motus Group (UK) Ltd to act as an agent on behalf of the insurer for insurance distribution activities only.

0333 numbers cost 2.5p per minute from a standard BT landline which is the same as if you were calling an 01 or 02 number and is usually included within your mobile contract minutes (where applicable). 0800 calls are free from a standard BT landline. Calls from other networks and mobiles may vary. As part of our ongoing commitment to improving the service we offer Motus Group UK customers, calls may be recorded for marketing and training purposes. These recordings are retained for 30 days, at which point they are deleted and cannot be retrieved. If you would prefer that we do not record your call, please inform the member of staff that you are speaking to who will suspend call recording for the duration of your conversation. Similarly, if at any point during the call you wish to stop the recording, please inform the member of staff you are speaking to. Vehicles and images are shown for illustration purposes only. Fuel consumption information is official government environmental data, tested in accordance with the relevant EU directive. Official EU-regulated test data is provided for comparison purposes and actual performance will depend on driving style, road conditions and other non-technical factors.