If it’s time to replace your personal car or provide your team with a new fleet, AFS offers a range of financial solutions to suit every situation, business or individual.

AFS is a member of BVRLA - the British Vehicle Rental and Leasing Association, so our customers can be assured of our expert advice when helping you select the appropriate financing method. Here are the four main ways we can help:

Business contract hire

This method involves hiring a car for a set period of time and pre-determined maximum mileage at fixed monthly rentals. The tax deductions for business car expenses depend on the CO2 emissions of each vehicle.


  • Fixed-cost motoring
  • Frees up cash flow
  • 100% of VAT claimable if vehicle is used solely for business
  • 85% of VAT claimable if private use is allowed by business
  • Rentals are Corporation Tax deductible
  • Additional line of finance that doesn’t affect banking arrangements
  • Eliminates many of the stresses/financial risks of vehicle ownership


  • Estimates of the time and mileage of the vehicle use are required
  • No option to purchase the vehicle

Personal lease

Leasing offers you the opportunity to drive a new car every few years with low monthly payments and no concerns about the car’s resale value. It is effectively a long-term rental. You never own the vehicle and there’s no option to buy it at the end of your agreement.


  • Monthly payment includes a maintenance package covering road tax and routine servicing
  • Monthly payments tend to be lower than those for a car loan
  • No concerns over depreciating value, warranty expiry or selling it on


  • You will never be able to purchase the car
  • Costs incurred if estimated mileage is exceeded

Business financial lease

As with contract hire, this method allows you to hire a vehicle for a fixed monthly fee. The vehicle will appear on your balance sheet however, as the outstanding rentals will be represented as a liability. There are usually two types of finance leases: one with a final balloon payment (due to the smaller monthly payments) or the fully amortised lease, where the finance is spread over a fixed period with the same amount paid monthly.


  • Fixed monthly rentals
  • 50% of VAT can be claimed if there is any private use of the vehicle
  • Rentals are Corporation Tax deductible
  • Potential to carry on using the vehicle at the end of the primary lease period
  • Additional line of finance without affecting core banking arrangements
  • Vehicle appears as an asset on the company books


  • Risk of fall in used vehicle prices
  • Monthly rentals appear as a liability on your balance sheet

Personal contract purchase

A personal contract purchase, or PCP, requires a deposit and monthly payments which are often smaller than with other types of finance. This is because a final sum - or balloon payment - is paid before you can own the car. This isn’t compulsory though; if the monthly payments are complete you can either:
1) hand over the final payment and the car is yours
2) hand the car back and the agreement has ended
3) trade the car in and begin a new deal with a new car.


  • Flexibility
  • Low monthly payments
  • Optional maintenance package may be available
  • No concerns over depreciating value, warranty expiry or selling it on (unless you plan to purchase it)
  • Option to own the car at the end of the deal


  • Not cost-effective if you want to own the car at the end of the agreement
  • Costs incurred if estimated mileage is exceeded

Found your financing method?

Whether you know which option you want or require some expert assistance, AFS can help get the wheels in motion.

So call us today on 01273 005 190 or email enquiries@autofunding.co.uk.