Business Leasing

Contract Hire

Fixed monthly costs without financial risk 

The running cost of cars and light commercial vehicles is one of the biggest expenses most businesses face. Add to that the risk of depreciation, and it’s no wonder Contract Hire is such an appealing option. 
Whether a customer is running a single car or a fleet of 10,000 vans, contract hire enables them to control one of their biggest expenses. 

Key customer benefits:

- The vehicle appears off ‘Balance Sheet’ as it is owned by the leasing company

- Tailor-make your own package with bolt-on products and benefits

- No financial risk associated with disposing of the vehicle

- Neva's considerable buying power enables us to pass on the savings to our customers through low cost rental as well as highly competitive ancillary products such as maintenance, foreign travel cover and accident management

- Customers who rent cars with CO2 emissions below 130gm2 will receive even greater tax benefit (we can certainly offer our customers the widest possible selection of vehicles)

- The convenience of a full maintenance service, at a fixed monthly cost, is optional

- Road Fund Licence is provided for the full term of the contract

- There is VAT recoverability at 50% for the supply of the vehicle and road tax licence. There is also VAT recoverability at 100% for optional services subject to the customer’s VAT status.

Contract Hire – also known as an operating lease - is the most common type of lease available in the UK, and remains extremely popular among Neva's customers 

Contract Purchase 

Eventual ownership 

Structurally similar to Contract Hire, Contract Purchase enables customers to make fixed monthly payments. However, with Contract Purchase the customer has the option of retaining the vehicle at the end of the contract. 

A guaranteed residual value, which enables lower monthly payments, is set by Network at the start of the contract, which gives the customer two options by the end:

  1. Hand the vehicle back
  2. Keep the vehicle by paying the outstanding residual value and using any equity as a deposit for the next vehicle.

Key customer benefits:

- The option to retain the vehicle at the end of the contract – without any depreciation risks

- Choosing vehicles with CO2 emissions below 160gm2 will, from April 2009, result in 20% more in capital allowances than other vehicles, and 10% for those above 160gm2

- Road Fund Licence is provided for the full term of the contract

- The convenience of a full maintenance service, at a fixed monthly cost, is optional.

Contract Purchase is ideal for companies that utilise high value cars and want funding flexibility along with the opportunity to own the vehicle without the residual risk

Finance Lease 

Pure, tax efficient facility 

Finance Lease is a popular funding option for commercial vehicles where Contract Hire is not suitable. (Cars can be financed as well) 

Key customer benefits:

- Neva's buying power helps the customer benefit from low monthly rentals

- Monthly rentals can be lowered further through the introduction of a balloon rental at the end of the contract. This can be set at a value equivalent to a forecasted residual value or reduced in line with anticipated wear and tear on the used value

- Although the customer does not own the vehicle they receive 98% of the sale proceeds. Where a balloon has been introduced, these proceeds are utilised to help clear the rental

- Available option to re-finance the balloon payment over a longer period of time

Lease Purchase 

Traditional vehicle finance 

Lease Purchase, a product very similar to Hire Purchase, is a more conventional funding facility that has been “outshone” in some respects by more recent products such as Contract Purchase or Personal Contract Purchase. Nevertheless, traditional Lease Purchase / Hire Purchase has a number of strong advantages for customers. 

Key customer benefits:

- Ideal for non-VAT registered companies that require ownership of the vehicle at the end of term

- Effective budgeting with Network’s balloon facility. Ownership of the vehicle can be acquired once the balloon has been paid in full

- Monthly payments are not subject to VAT

- The vehicle is registered in the name of the customer, and where this is a company, the vehicle will appear on the balance sheet and writing-down allowances can be claimed.

Lease Purchase is a dedicated funding product that does not include maintenance or any other value added services. The customer is liable for the full value of the vehicle and has no option to return it at the end of the contract. 

Should the agreement be for an LCV (light commercial vehicle), then the full amount for the VAT on the purchase must be paid upfront by the customer. This is a reclaimable payment providing you are a VAT registered business. 


For more information or to discuss your circumstances please get in touch on
01825 720900 or

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