Bowater Price plc

Company Relationships

• British Vehicle Rental and Leasing Association are our trade association member
• We are an agent for Lex Autolease Ltd
• We are an agent for Arval Uk Ltd
• We are an agent for Alphabet (Gb) Ltd
• We are an agent for LEASEPLAN UK LIMITED

Brand & Trade Names

• Contract Hire A simple and cost effective way to fund any number of vehicles. WHAT IS CONTRACT HIRE? Contract hire is a popular funding option to finance fleets of all shapes and sizes. You lease the vehicles required from your lease provider for a fixed monthly rental over a fixed term, usually 2-5 years and for an agreed contractual mileage. At the end of the term you return the vehicles and providing there is no excess mileage or damage to the vehicles there is nothing further to pay. You can also include a maintenance contract over the same period, paying a fixed monthly amount to cover servicing, tyre replacement, maintenance and repair costs. Funding by contract hire means you are not exposed to losses on resale as the residual value risk sits with the lease provider. Therefore, your costs are fixed over the contract term (subject to excess mileage and end of contract damage charges) allowing you to budget effectively. All you need to decide is the length of the contract and expected mileage and we will look after the rest. KEY ADVANTAGES: Fixed monthly rental payments allow you to manage your fleet costs effectively No residual value or maintenance risk (if a maintenance contract is taken) VAT benefits include 50% recovery for company cars; 100% recovery for commercial vehicles (subject to your VAT recovery rate) Monthly lease payments are available for offset against corporation tax Off balance sheet accounting treatment With Contract Hire you are able to choose from most makes and models of vehicles. It’s a flexible service, too – you can change the agreed mileage or term length if you need to (subject to conditions). At Bowater Price, we go the extra mile to make sure your fleet is just right for your business. With all Contract Hire vehicles – both cars and vans – you can take advantage of our useful extra services, all designed to take the hassle out of fleet management. Some of the services we offer are: Roadside assistance Technical support Accident management Fleet maintenance management KEY FEATURES: Your vehicles remain a business expense, but never appear on your balance sheet Enjoy fixed monthly payments due to the VAT advantages of leasing Where a driver has private use of a vehicle, the customer is normally able to reclaim 50% of the VAT charged for funding Where a driver only uses a vehicle for business purposes, 100% of the VAT can normally be reclaimed Operational costs are more predictable, so you can manage your fleet effectively You can add ancillary services such as vehicle maintenance, fleet administration, or duty of care You don’t need to worry about having to sell vehicles yourself. The Leasing company take care of this process Your cashflow is freed up for you to use elsewhere in your business There are cost implications if you terminate your funding agreement early Excess mileage charges may apply The vehicle must be returned in good condition - please see the BVRLA fair wear & tear guide for more information
• Contract Purchase A simple and cost effective way for businesses to purchase vehicles. WHAT IS CONTRACT PURCHASE? Contract Purchase gives you the flexibility to spread the cost of a new vehicle over a pre-determined period, usually 2 – 5 years, after which you have the option to own the vehicle outright or return it to the finance company. Contract Purchase is an on-balance sheet method of funding. Simply choose your vehicles and the finance company will buy them. You then pay a fixed monthly sum for the duration of your agreed loan period. At the end of this term, you’ll have the option to purchase each vehicle by making a final ‘balloon’ payment based on its residual value. Alternatively, you can agree to return the vehicle without the need to make a “balloon” payment and provided there is no excess mileage or damage to the vehicle there is nothing further to pay. Contract purchase agreements usually have the option to include maintenance giving you peace of mind that both finance and maintenance costs are fixed throughout the duration of the contract. KEY ADVANTAGES: Fixed price motoring, with similar residual value and maintenance risk protection as contract hire (if the vehicle is returned) Option to pay the end of contract balloon payment and own the vehicle outright, or return it to the finance company at the end of the contract Ideal for commercial vehicles since VAT can be fully reclaimed up front based on the vehicle purchase price depending on VAT registration status Suitable for company cars if your company is restricted in the amount of VAT it can reclaim or alternatively if there is no private use Possible to access 100% capital allowances up to £200,000 acquisition cost for commercial vehicles until December 2015 (via Annual Investment Allowance) As with many of our funding methods you can benefit from our purchasing power and industry experience to make sure you are running your fleet as effectively as possible. Contract Purchase offers on balance sheet funding while removing the uncertainty of residual value fluctuations. KEY FEATURES: Enjoy predictable fleet costs that are easier to manage No residual value risk at the end of the vehicle term Ideal for commercial vehicles Suitable for company cars if your company is restricted in the amount of VAT it can reclaim No VAT recovery on company cars On balance sheet accounting treatment There are cost implications if you terminate your funding agreement early (although this applies to most forms of funding but may not be so transparent with other providers)
• Finance Lease A flexible form of fleet funding for all businesses. WHAT IS FINANCE LEASE? Finance lease is a method of funding that allows you to use a vehicle without taking ownership. You are charged rentals throughout the contract period, usually 2 – 5 years, based on the purchase price and estimated residual value. At the end of the agreed rental period, you can continue to use the vehicle on an informal extension basis in return for additional rental payments. The depreciation element of the rental will then be used to further reduce the vehicles estimated sale value. If the resale value exceeds the estimated residual value you will be rebated the difference (taking into account disposal costs), however if the resale value is less then you will need to pay the lease provider the difference. As you take the residual value risk, you will account for finance lease contracts as fixed assets which are recorded on your balance sheet. Finance lease is often suitable for organisations used to outright purchasing who want to consider the funding benefits of leasing but who are comfortable taking the residual value risk on resale and therefore do not want to contract hire their vehicles. KEY ADVANTAGES • VAT benefits include 50% recovery for company cars; • 100% recovery for commercial vehicles (subject to your VAT recovery rate) • Opportunity to benefit from potential profit on disposal • There are various payment options for organisations that have spare capital and may wish to accelerate VAT recovery and reduce interest costs • Other services can be added, including maintenance or accident services KEY FEATURES • Where a driver has private use of a vehicle, the customer is normally able to reclaim 50% of the VAT charged for funding Where a driver only uses a vehicle for business purposes, 100% of the VAT can normally be reclaimed • You enjoy a predictable cashflow for the contract duration • You bear the residual value risk • Vehicles are recorded on your balance sheet • There are cost implications if you terminate your funding agreement early (although this applies to most forms of funding but may not be so transparent)
• Personal Contract Hire A simple and cost effective way to drive a new vehicle every few years for a fixed cost WHAT IS PERSONAL CONTRACT HIRE? Personal Contract Hire is the most popular form of personal leasing. You lease the car required from your lease provider for a fixed monthly rental over a fixed term, usually 2-5 years and for an agreed contractual mileage. At the end of the term you return the car and providing there is no excess mileage or damage to the vehicles there is nothing further to pay. You can also include a maintenance contract over the same period, paying a fixed monthly amount to cover servicing, tyre replacement, maintenance and repair costs. Funding by Personal Contract Hire means you are not exposed to losses on resale as the residual value risk sits with the lease provider. Therefore, your costs are fixed over the contract term (subject to excess mileage and end of contract damage charges) allowing you to budget effectively. All you need to decide is the length of the contract and expected mileage and we will look after the rest. KEY ADVANTAGES: Fixed monthly rental payments allow you to manage your costs effectively No residual value No maintenance risk (if a maintenance contract is taken) With Personal Contract Hire you are able to choose from most makes and models of vehicles. It’s a flexible service, too – you can change the agreed mileage or term length if you need to (subject to conditions). At Bowater Price, we go the extra mile to make sure your car is just right for you. With all Personal Contract Hire cars, you can take advantage of our useful extra services, all designed to take the hassle out of your driving experience. Some of the services we offer are: Roadside assistance Technical support Accident management KEY FEATURES: Enjoy fixed monthly payments You can add ancillary services such as vehicle maintenance and roadside assistance You don’t need to worry about having to sell vehicles yourself. The Leasing company take care of this process No large initial payment required There are cost implications if you terminate your funding agreement early Excess mileage charges may apply The vehicle must be returned in good condition - please see the BVRLA fair wear & tear guide for more information
• Personal Contract Purchase A simple and cost effective way to drive a new vehicle every few years for a fixed cost WHAT IS PERSONAL CONTRACT PURCHASE? Personal Contract Purchase gives you the flexibility to spread the cost of a new car over a pre-determined period, usually 2 – 5 years, after which you have the option to own the vehicle outright or return it to the finance company. Simply choose your car and the finance company will buy it. You then pay a fixed monthly sum for the duration of your agreed loan period. At the end of this term, you’ll have the option to purchase each vehicle by making a final ‘balloon’ payment based on its residual value. Alternatively, you can agree to return the vehicle without the need to make a “balloon” payment and provided there is no excess mileage or damage to the vehicle there is nothing further to pay. Where you agree to return the vehicle, you can continue to use it on an informal basis in return for additional payments, alternatively you can simply request for the vehicle to be collected at the end of contract. Personal Contract purchase agreements usually have the option to include maintenance giving you peace of mind that both finance and maintenance costs are fixed throughout the duration of the contract. KEY ADVANTAGES: Fixed price motoring, with similar residual value and maintenance risk protection as personal contract hire (if the vehicle is returned) Option to pay the end of contract balloon payment and own the vehicle outright, or return it to the finance company at the end of the contract As with many of our funding methods you can benefit from our purchasing power and industry experience. KEY FEATURES: Enjoy fixed monthly payments You can add ancillary services such as vehicle maintenance and roadside assistance You have the option to own or return the vehicle at the end of the agreement No large initial deposit required There are cost implications if you cancel your funding agreement early Excess mileage charges may apply The vehicle must be returned in good condition - please see the BVRLA fair wear & tear guide for more information

Products & Services