Red Eagle Finance Ltd

Hire Purchase

  • Traditional form of funding with a minimum deposit and fixed monthly payments.
  • Ownership title passed on completion of the agreement.
  • Monthly payments do not attract VAT.
  • On balance sheet for the business user.
  • Capital cost can be written down for tax purposes on a reducing balance up to £3000.00 against taxable profits per annum.
  • Interest (usually without limit) is also allowable against taxable profits but may be restricted for private use.

Lease Purchase

  • Funding option with a minimum deposit or upfront instalment and fixed monthly payments.
  • The agreement can carry a final payment called the balloon or residual which reduces the monthly payment during the agreement.
  • Ownership title passed on completion of the agreement.
  • Monthly payments do not attract VAT.
  • On balance sheet for the business user.
  • Capital cost can be written down for tax purposes on a reducing balance up to £3000.00 against taxable profits per annum.
  • Interest (usually without limit) is also allowable against taxable profits but may be restricted for private use.

Personal Contract Purchase

  • A variation on the hire purchase theme with a minimum deposit and fixed monthly payments.
  • The agreement carries a final payment called a guaranteed future value which reduces the monthly payment during the agreement.
  • Three options are available at the end of the agreement term, return the vehicle back to the finance company with nothing further to pay, part exchange the vehicle at a dealership or pay the guaranteed future value and keep the vehicle.
  • Ownership title passed at the end of the agreement if the guaranteed future value is paid.
  • Monthly payment figures and guaranteed future values are based on agreement period and annual mileage.
  • Monthly payments do not attract VAT.
  • On balance sheet for the business user.
  • Capital cost can be written down for tax purposes on a reducing balance up to £3000.00 against taxable profits per annum.
  • Interest (usually without limit) is also allowable against taxable profits but may be restricted for private use.

Finance Lease

  • Funding option with a minimum deposit or upfront instalment and fixed monthly payments.
  • The agreement can carry a final payment called the balloon or residual which reduces the monthly payment during the agreement.
  • A percentage of the sale proceeds are returned after the vehicle has been sold, usually 95%.
  • Ownership title retained by the finance company.
  • Off balance sheet for the business user.
  • Monthly payments attract VAT.
  • 50% of VAT on monthly payments reclaimable as long as the user is VAT registered.
  • Monthly payments allowable against taxable profits subject to Inland Revenue guidelines.

Contract Hire

  • Funding option with a minimum deposit or upfront instalment and fixed monthly payments.
  • Typically these agreements include all running costs i.e. servicing, tyres, road tax and replacement vehicle.
  • Monthly payment figures are based on agreement period and annual mileage.
  • Ownership title retained by the finance company.
  • Off balance sheet for the business user.
  • Monthly payments attract VAT.
  • 50% of VAT on monthly payments reclaimable as long as the user is VAT registered.
  • Monthly payments allowable against taxable profits subject to Inland Revenue guidelines.