FAQ's

How many miles per annum I am allowed to do in my new car or van?

Answer – As part of our consultation process you set your mileage when you take out the contract. The mileage can range from 5,000 to 40,000 per year depending on the finance company the agreement is being written with. If you exceed the mileage agreed then an excess mileage charge will come into play. These figures will be provided on your quotation, order form and of course official finance documentation. The excess mileage will be invoiced upon collection of your vehicle at the end of the agreement and taken by Direct Debit by the finance company.

Should I be extra cautious about how many miles I think I am going to do?

Answer – Ultimately you are best positioned to know how many miles you will cover so if you think you will cover approximately 12,000 miles per annum, go for that choice, rather than taking 15 000 ‘to be on the safe side’. You won’t receive a credit if at the end of the agreement you are under your contracted mileage. You can amend your contract midway through the agreement period if your circumstances change and you are covering more mileage than anticipated. The variation in the remaining monthly payments is usually based on the factors that prepared the original contract price and avoids end of contract additional costs.

Why does the monthly rental price increase with the number of miles I do?

Answer - The way the pricing is calculated is directly related to the vehicle’s anticipated future value – also called the Residual Value. As an example if the price of a new vehicle £20,000 and you take a 3 year agreement covering 15,000 miles per year – then the car could be worth say, £12000 at the end of the agreement – therefore the actual depreciation is £8000 – The monthly payment you pay will be based on that amount. Clearly, if you cover more miles, say 20,000 per year, the future value may only be £11,000 and therefore the amount of depreciation your payments are calculated on is £9,000.

I don’t have my own business; can I lease the car personally?

Answer - Yes. We offer a whole range of personal leasing schemes and often you can take advantage of our corporate terms.

Can I reclaim VAT on my contract hire payments?

Answer - Simply the answer is Yes if you are a Business user and No if you are a Personal user. Business users who are VAT-registered can currently reclaim a minimum of 50% of the VAT payable on each contract hire payment. This is assuming that the vehicle will be used for both business and social use. You may be able to reclaim the whole amount of the monthly VAT if the vehicle is used solely for business use and your accountant will advise you on the best way for you. If you decide that you wish to have the contract maintained, then all business users who are VAT-registered can reclaim 100% of the VAT on each monthly rental. Private individuals are not able to reclaim any of the VAT on the monthly price. Recoverable VAT only applies to VAT-qualifying agreements such as Business Contract Hire and Finance Lease.

I’m a new business and have only just started my company, can you assist me?

Answer – Usually, we have access to many different finance sources and can usually match a funder to meet your requirements. Please call one of our consultants to discuss your circumstances

Your prices seem very low, how are you so competitively priced?

Answer – Buying in large volume, managing our costs and matching our clients to the best available funding choice all pay a part in this. We are focused on remaining competitive whilst ensuring that this doesn’t degrade the high service standards we want to achieve.

I’m opting out of my company car scheme, what’s the best option for me?

Answer - Please call us to discuss how we can help you best as there are many options open to you. We have a range of different funding options specifically set up for company opt out employees and a selection of products to help you enjoy your next vehicle.

 

If you have any other questions or need to know anything further please get in touch on 01825 7209000 or sales@neva-consultants.com