Belmont Group

Business

Belmont Business Centre

At Belmont we focus on offering you the best personalised advice and support when picking your next fleet of any size from one to 100 cars.  We can work with your business long term providing your ongoing serving needs from the name you can trust.

Manufacturers

Select one of our manufacturers to see cars and sample financing.

KIA

KIA

Suzuki

Suzuki

Jeep

Jeep

Mitsubishi

Mitsubishi

Volvo

Volvo

Finance Options

Your fleet isn't just a way of keeping your team moving, it can be a valuable asset and crucial business tool. Our Edinburgh based fleet experts work with you to understand your business objectives. Whether you want the most tax-efficient fleet solution, an attractive employee benefit or the chance to free up capital, we can help you choose a method of funding that will work with your business now and in the future.

The main finance options are Contract Hire were we own the vehicle and lease it for your business needs and normally this includes servicing and maintenance in your monthly payments.  The example payments shown are based on this model.  Then Hire Purchase which is a simple finance solution were you buy and own the vehicle, based on an initial payment and equal monthly payments.

 

Business Contract Hire offers a straightforward way to fund brand new cars for your company. It’s an easy to manage solution that doesn’t tie up capital and can be tailored to meet your business needs.

How it Works

Select the cars you want, based on your budget, then select a lease period that suits your needs (usually between 24 and 48 months). Finally, set a realistic annual mileage limit.*

Your monthly lease payments will be fixed, and will be based on the terms you agree. At the start of your lease, you pay an initial sum, generally equal to six monthly payments combined. From then on, you pay a fixed, single monthly fee until the end of your agreement.  You can also take out a maintenance agreement (at an additional cost), which means that as part of your monthly payments we’ll also manage any day to day repairs and servicing for you.

As long as your business is VAT registered you can claim back up to 50% of the VAT if the cars are used for both business and personal use. You can also claim back 100% of VAT on any maintenance packages.

Once your contract hire period has ended, simply hand the cars back to us. We will handle vehicle disposal / re-sale and you can focus on choosing new vehicles to upgrade your fleet.

The Benefits

  • No need to tie up capital in your fleet – vehicles don’t currently appear on your balance sheet
  • Fixed monthly payments allow for easy budgeting
  • Keep your business moving and your drivers motivated, with brand new cars
  • Low initial outlay – typically just 6 monthly payments combined
  • We take on the risk – so you don’t need to worry about vehicle depreciation
  • Potential to save time and money on administration, with our full maintenance and servicing options
  • Tax efficient funding method if your company is VAT registered

Is Contract Hire right for you?

Choose the funding method that’s right for your business:

  • It may suit you if you are VAT registered, allowing you to make the most of the tax advantages, and if your drivers do regular, predictable mileage.
  • It might not suit you if your fleet mileage is unpredictable, or if your company isn’t VAT registered, as you won’t be able to claim back the VAT on your rental payments.

 

* If you think you might exceed the agreed mileage limit, talk to us as we may be able to offer revised terms based on your new mileage projections

Contract purchase is a fleet funding solution that allows your company to purchase car fleet vehicles over a set period of time, eliminating the large capital outlays associated with outright purchase.

How it Works

First, you choose cars based on your budget, agree a lease period and a mileage limit for the duration of your lease. We then lease the vehicles to you for a set monthly fee, with a fixed payment up front, and a final balloon payment at the end of the contract. You can also take out a maintenance agreement with us for day to day repairs and servicing, which can be built into your monthly payments. The cars will become your property once you have paid all of your rental instalments, plus your final balloon payment.

Throughout your leasing period, fleet cars appear on your balance sheet as a fixed asset with a lease creditor, and depreciate over the life of the agreement. They then have a residual value at the end of the contract.

As your fleet is a company asset, up to 18% of the cars’ value is allowable each year against taxable profits for vehicles emitting 130gm/km or less. 

VAT on the purchase price of cars cannot be reclaimed at the beginning of the agreement unless it can be proven that there is no private use on fleet cars. If you are VAT registered you can claim back 100% of VAT on any maintenance option.

The Benefits:

  • Fixed monthly payments allow for improved cash-flow and easy budgeting during the contract period
  • No need to tie up all your capital at once
  • Own your own fleet, with minimised depreciation risks
  • Low initial outlay – typically just 6 months’ lease payments
  • Save time and money on administration with our full servicing & maintenance option
  • Take advantage of capital allowances on low emission cars
  • Reclaim VAT for business use only vehicles and maintenance costs
  • At the end of your lease period you can return the vehicle to us, rather than pay a final balloon payment, if purchasing is no longer in the interests of your company

Is Contract Purchase right for you?

Decide whether contract purchase is the right funding option for your business:

  • It may suit you if a large number of your fleet vehicles are business use only, in which case you can recover the full amount VAT at the start of the contract. It may also suit you if you wish to avoid tying up large amounts of capital by buying your fleet vehicles outright, or if you wish to reduce administration by outsourcing your fleet servicing & maintenance as part of acquiring new vehicles.
  • It may not suit you if you do not wish to own your own fleet outright, or if the vehicles are subject to some private use, which will prevent you from reclaiming VAT on the purchase price.

Employee Car Ownership (ECO) can provide both your company and its employees with a tax efficient alternative to company cars and can offer a flexible employee benefit. Unlike traditional company car schemes, with an ECO scheme the employee has legal ownership of the vehicle. Because of this, neither the employee nor the employer are subject to any company car tax or NIC on the benefit.

How it Works

ECO schemes entail employers offering employees a monthly salary allowance to spend on a car of their choice. This allowance is generally based on the employee's grade, tax bracket and annual business mileage. 

Vehicles within an ECO scheme are sold directly to employees through a credit sale agreement, with contract terms and mileage limits to suit them. Employees do not pay BIK tax, as is usually required within a traditional company car scheme. Rather, they make a personal contribution to the vehicle via payments deducted directly from their salary each month. As part of this payment, insurance, accident and breakdown cover and servicing of the vehicle are included.

Because employees legally own the vehicle, your company may benefit from the tax-efficient nature of business mileage reimbursement on privately owned vehicles, as well as making company car tax and NIC savings. For companies who have a large field-based workforce with high business mileage, the savings under an ECO scheme can be sizeable.

The Benefits:

  • Potential company car tax and national insurance savings for employers and employees
  • Tax-efficient benefits of mileage reimbursement on privately owned vehicles 
  • A flexible employee benefit at no direct cost or contractual risk to your company
  • Rewards staff with the chance to drive the newest car models
  • Employees have the opportunity to purchase their own car at competitive rates
  • Option to trade up by increasing personal contributions, or trade down and benefit from cash payment for any difference in vehicle cost and cash allowance (subject to policy restrictions)
  • Vehicle servicing, maintenance and insurance are included in payments, for the life of the credit agreement
  • Employees are not subject to Benefit in Kind (BIK) tax

Is Employee Car Ownership right for you?

Setting up an ECO scheme can require significant administrative resources. As such, it may not be a suitable funding option for everyone. However, in certain circumstances, potential savings can be sizeable. Decide if an ECO scheme is right for you:

  • An ECO scheme may suit you if you have a large field-based workforce with high mileage, you’re willing to monitor business mileage, and you’re able to invest time and resources in setting up the scheme
  • It may not suit you if you’re unable to monitor business mileage closely or commit resources to setting up the scheme

Our finance lease option gives you the flexibility to structure repayments to suit your business.

How it Works

You choose cars based on your budget, a lease period that suits your needs (usually between 24 and 48 months), and agree an annual mileage limit.*

You can also choose from two methods of finance:

  • You pay for the entire cost of the vehicles over the contract period
  • You pay smaller monthly instalments with a final balloon payment at the end of the lease


Whichever type of finance you choose, we lease you the vehicles for a fixed monthly fee, with a fixed payment up front. If you take out a maintenance agreement with us, we’ll also manage any day to day repairs and servicing.

During the period of the lease, you have full use of the cars but you never take ownership of them. The lease contract ends with a final payment equivalent to the residual value of the vehicles, normally managed through the sale of the vehicles.

The cars appear on your balance sheet during the lease. If you are VAT registered you can claim back up to 50% of the VAT on lease payments for cars used for business and private use, or 100% of VAT on those used for business only. You can also reclaim 100% of VAT on any maintenance option.

Finance lease is tax efficient if you choose greener vehicles –100% of rental payments being allowed against taxable profits, as long the emissions are 130g/km or less.

The Benefits

  • Fixed monthly payments allow for easy budgeting and improved cash flow
  • Choose your method of finance to suit your business – even monthly payments or including a final balloon payment
  • Low initial outlay – typically just 10-15% of the car’s value
  • Save time and money on administration with our full service maintenance option
  • VAT-efficient for most businesses

Is Finance Lease right for you?

Our finance lease option won’t be right for every business. You’ll benefit from fixed payments, it can be tax efficient and there’s the potential to carry on using the vehicle at the end of the contract by paying a nominal rental. On the other hand, if you opt to include a final balloon payment, and there is a shortfall between what the vehicle is sold for and the payment due, you’ll be responsible for making up the difference.

 

* If you think you might go over the agreed mileage limit, talk to us – we may be able to adjust your monthly payments to avoid end of contract charges.

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