Finance

Leasing

For business or personal use, when choosing car finance it is important to take into account the various finance options available and which finance package would best suit your needs.

Leasing (finance lease):

A finance lease or lease agreement is an arrangement where you are entitled to full use of the vehicle, over an agreed term in exchange for a fixed rental. Rentals are based on the cost of the asset together with the interest cost for the proposed term. Lease rentals are normally paid on a monthly basis over the agreed primary term, usually 3 to 5 years. At the end of the lease, you have got several options:

• You can extend the lease agreement and continue to lease the car at a nominal yearly rental.
• You can buy the car, for what is usually a nominal rental.
• The car can be traded in for a new one.

Consumer Hire

When considering vehicle finance, be it for personal or business use, it is important to take account of the different finance options available and choose the finance product best suited to your particular personal needs.

Consumer Hire

A Consumer Hire agreement is an arrangement whereby you hire the vehicle over an agreed term in exchange for a fixed monthly rental. Rentals are calculated on the total cost of the vehicle together with the interest cost over the chosen term of Hire, which is usually 3 to 5 years. Rentals payable will be inclusive of VAT at current rates.

At the end of the Hire term you have the following options:
• You may extend the Hire term by paying a small annual fee.
• You may purchase the car (indirectly) for what is usually a nominal fee.
• You may use the value of the car as a trade against the value of a new Toyota

Lending criteria, terms and conditions apply

Hire Purchase
When considering vehicle finance, be it for personal or business use, it is important to take account of the different finance options available and choose the finance product best suited to your particular personal needs.

Hire Purchase

Under a Hire Purchase contract, you select the car of your choice, which is then purchased, on your behalf by Toyota Finance*. The Hire Purchase agreement consists of fixed monthly installments over a chosen term of 3 to 5 years. The monthly installment payable will take account of any deposit you may wish to pay or trade- in value in your existing vehicle. On completion of the agreement, you can then get outright ownership of the vehicle by paying the nominal purchase installment amount. (€63.49).

Hire purchase is a simple straightforward method of funding your new Toyota car from Cummins Car Centre.

In addition to standard Hire Purchase funding, Cummins Car Centre have now introduced the 'Easypay 'option. This is a Hire Purchase agreement with a difference. During the initial term of the agreement, which is generally 3 years, fixed affordable monthly installments are payable. On completion of the initial term, there is then a final payment due which will have been agreed with you in advance and which will reflect the assumed value of your car at the end of the 3-year term. At this stage you have the following options:
• Keep the car and pay the final installment
• Keep the car and refinance the final installment over 2/3 years.
• Trade in the car and use any equity towards another new Toyota using the 'Easypay ' funding plan.
*Toyota Finance is a trading name of Bank of Ireland Finance.

Lending criteria, terms and conditions apply

Vehicle Leasing for Business

When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.

Vehicle Leasing for Business (Finance Lease):

For many businesses Vehicle Leasing is a very attractive and cost effective way of keeping the entire sales fleet and delivery vehicles updated and on the move.

Leasing can be used in a variety of situations whether it is for that new executive car, the entire fleet or delivery and other commercial vehicles that need to be replaced.

There are generally two types of Vehicle Leasing in use, the most well known of which is the Finance Lease or (as it is sometimes known) "Full Payout Lease". The other is Contract Hire (see Contract Hire)

A Finance Lease is a method of leasing used when a business wishes to have flexible options at the end of the lease, either to extend the agreement beyond the original term (by making a small annual payment), or to obtain the value of the equity in the vehicle(s) on disposal. Fixed rental payments are a feature of this type of leasing which makes budgeting of transport needs much simpler. In addition, lease rentals may (subject to current legislation) be offset against a business's taxable profits and can, in certain circumstances, defer its tax liability.

Benefits of Leasing:
• Immediate use of new Toyota vehicles with minimum cash outlay.
• Cash resources and bank credit lines are preserved thus maintaining liquidity.
• The term of the lease can be matched to the economic life of the vehicle - 3 to 5 years.
• A professional sales image is reflected with a modern and up to date fleet of Toyota vehicles
• Sales Professionals are motivated knowing that vehicles will be changed at regular intervals.

Contract Hire
When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.

Contract Hire

Contract Hire is Lease agreement but it differs from a normal lease agreement in that it includes an arrangement agreed at the outset whereby the vehicle is returned to Cummins Car Centre Ltd..

The rentals payable by a business during the Hire period are usually lower than those payable under a standard Finance Lease because the value of the vehicle at the end of the term is taken into account. Similar to a standard Finance Lease, rentals payable under Contract Hire are allowable against tax (subject to current legislation and Revenue limits)

Contract Hire is suitable for most Toyota business vehicles including cars, delivery vans and other Toyota commercial vehicles.

Lending criteria, terms and conditions apply

Benefits of Contract Hire.

Under this type of Lease agreement a business can derive benefit both from a financial and an operating perspective.

The Financial features include :

The possibility of achieving "Off Balance Sheet" status of the financing arrangement with a possible resultant gearing enhancement and improved return on capital employed.
Fixed rentals allow accurate budgeting and forecasting and are a protection against interest rate fluctuations.
Lease rentals are deductible for tax purposes (subject to current legislation).

Operating features include :

Vehicle maintenance can be included in the Lease Contract, thereby greatly simplifying budgeting and fleet running costs.
Residual and disposal values risks are eliminated.

Hire Purchase for business

When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.

Hire Purchase for Business

Hire Purchase is a finance agreement whereby your chosen vehicles are purchased, on your behalf, by Toyota Finance*and hired to you / the business, for a pre agreed term. (Usually 3-5 years)

With Hire Purchase, the cost of the vehicle(s) together with the interest cost for the chosen period is repayable by fixed monthly installments.

For business and taxation purposes, vehicles acquired under a Hire Purchase arrangement are treated as fixed assets. Capital allowances therefore may be claimed at 12.5% per annum, however this is subject to a limit per vehicle (saloon cars),currently set by the Revenue at €22,000.The interest cost may also be written off over the term of the agreement, however this is subject to apportionment where the cost of the vehicle exceeds the Revenue limit.

With Hire Purchase, you may also defer a portion of the capital cost until the end of the agreement at which stage you then pay a final "balloon" payment. Upon completion of the Hire term you can obtain full ownership of the vehicle (s) on payment of a small 'purchase fee. (€63.49)

Benefits of Hire Purchase.

• The product is a straightforward one with no tax implications on completion of the agreement.
• Fixed installments provide for more accurate budgeting and forecasting
• Funding vehicles by way of a separate line of credit leaves working capital free to be used where it is needed most - in the business.
• As well as preserving valuable working capital, Hire Purchase can provide more accurate cash- flow management and control.
• The paperwork is straightforward and simple to complete allowing you to take delivery of your brand new Toyota with a minimum of fuss.
*Toyota Finance is a trading name of Bank of Ireland Finance.

Lending criteria and terms and conditions apply.