Choosing the right finance package to pay for your new vehicle is as important
G.D.Commercials believe that choosing the right finance package to pay for your new vehicle is as important as choosing the vehicle itself, which is why we pride ourselves in the fact that we assist you in getting the best possible package to suit your own requirements.
We understand what you really need as a business: A low cost one stop service you can rely on.
Through our finance house partnerships, we look to provide the most competitive rates in a payment profile to suit you.
Whether you are a private customer or a business customer, please call us to discuss the best method to suit your needs.
Hire Purchase
The traditional way to finance the purchase of a vehicle, hire purchase enables you to pay an initial deposit and then clear the balance in monthly instalments. At the end of this period, the van is yours.
Benefits of Hire Purchase
- The assets can be used immediately whilst allowing repayments to be staggered, giving companies a better cash flow
- HP agreements are easily negotiated and available
- The most up to date technology can be hired and used to increase company productivity and efficiency
- The hirer can recover the writing down costs and VAT on the assets
- There is a clearly defined financial commitment from the outset
- Security is on the transaction that has been financed thus requiring no additional commitment from the customer
- HP is not repayable on demand unless the customer defaults on the agreement
GD Commercials Limited Status Disclosure
GD Commercials Limited is authorised and regulated by the Financial Conduct Authority, FRN 648946, registered company number 06973768.
We are a credit broker not a lender and can introduce you to a limited number of lenders. We typically receive a fixed commission calculated by reference to the vehicle model or amount you borrow, for introducing you to a lender, but this does not affect the interest charged on the finance agreement, which is set by the lender. Our lenders also provide preferential rates to us for the funding of our vehicle stock and financial support for training and marketing.
GD Commercials Limited receive commission as a proportion of premium paid from its Insurance provider if you decide to enter into an agreement with them. We disclose the existence of commission, and upon request, the amount of any commissions payable, which promotes transparency with our customers.
Finance
As a licensed credit broker we can introduce you to a limited number of lenders (a list is available on request) who may be able to help you finance your purchase.
The group of lenders provides us with a range of products which may be suitable for your purchase. We will explain the key features of those products to you. We are not Independent Financial Advisors and so are unable to provide you with independent financial advice. There are also other sources of finance which you may wish to investigate. There is no fee for this service. We may receive a payment(s) or other benefits from finance providers should you decide to enter into a finance agreement with them via us
Data Protection & GDPR – Fair Processing Notice
Your personal data is held in accordance with the Data Protection Act 1998.
Some or all of your data that you supply to us in connection with your finance or insurance proposal will be passed to insurers and other companies in order to operate your contract (for example underwriting, premium collection, claims handling). We will pass your details to our partners in order to offer some forms of finance or insurance. We will not pass your details on to any third parties for marketing purposes, and nor will we contact you without your prior consent in relation to marketing of any products or services we offer.
If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information. We and other organisations may also access and use this information to prevent fraud and money laundering, for example, when: Checking details on applications for credit and credit related or other
facilities, managing credit and credit related accounts or facilities, recovering debt, checking details on proposals and claims for all types of insurance and checking details of job applicants and employees
Please contact us at the address above if you want to receive details of the relevant fraud prevention agencies. We and other organisations may access and use the information recorded by fraud prevention agencies
What to do if you have a complaint
We aim to ensure that all of our customers are happy with the services we provide and their product purchase. If, however you have any cause to make a complaint you should contact us either in writing or by telephone. If you do wish to register a complaint, please contact us:
In writing: Geoff Ditchburn 50 FERNHILL ROAD BOOTLE L20 9HH – email sales@gdcommercials.co.uk
If we cannot settle your complaint, you may be entitled to refer it to the Financial Ombudsman Service.
Leasing
There are two types of leases :
- Finance Leases
- Operating Leases
Leasing is a contract between the leasing company, the “lessor”, and the customer, the “lessee”;
- The leasing company buys and owns the asset that the lessee requires
- The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset.
- The leasing company can sometimes claim capital allowances on the assets. These benefits are usually passed onto the lessee in the form of reduced repayments.
Finance Leases
Under a finance lease the rental covers virtually all of the costs of the asset, therefore the value of the rental is equal to or greater than 90% of the cost of the asset. The leasing company claims written down allowances, whilst the customer can claim both tax relief and VAT on rentals paid.
Operating Leases
The lease will not run for the full life of the asset and the lessee will not be liable for its full value The lesser or the original manufacturer or supplier will assume the residual risk. This type of lease will normally only be used when the asset has a probable resale value; for instance aircraft or vehicles. The most common form of operating lease is known as contract hire. Essentially this gains the customer the use of the asset together with added services. A very common example of an asset on contract hire would be a fleet of vehicles.
Residual Values
A residual value is the value of the asset at the end of the lease term. Residual values play an important role in an operating lease that is used in conjunction with equipment that retains value at the end of the contract period. The residual value will be left out of the rental calculation. Either the leasing company or a third party will take the risk that the asset will not be worth the amount of the residual value at the end of the lease.
Balloon Rentals
Under a balloon rental payments are made over the period of the lease, sometimes a larger payment or lump sum called a balloon payment is made at the beginning or end of the lease period. Often the customer would pay a balloon payment on the last day of their lease.
Lease Purchase
A lease purchase is essentially the same as HP; the main difference is in the terms and structure of repayments. Some finance companies differentiate Lease Purchase from Hire Purchase by using it where the customer wishes to defer payment of a substantial part of the asset cost until the end of the agreement.
