An Operating Lease is a hire contract between you and Isuzu Truck Finance. The rentals are calculated upon the estimated depreciation of the truck over the period of hire, rather than just the initial cost. At the end of the contract you return the truck with no further payments provided that you have performed and carried out all the obligations under the agreement.
A Finance Lease is also a hire contract between you and Isuzu Truck Finance. In this case Isuzu Truck Finance agrees to purchase the truck you have selected from Isuzu and hire it to you at an agreed price over an agreed period of time. You then pay Isuzu Truck Finance rental payments over the term of the lease, normally with several due in advance. At the end of the contract the truck is sold with the majority of sales proceeds treated as a rebate of rentals to you.
A Hire Purchase Plan, which is commonly referred to as Leased Purchase, is a hire contract with the cost of the truck repaid in full over the contract in fixed installments. Once all the payments have been made, title of the truck will pass to you upon exercise of the option to acquire title and payment of the option price. For tax purposes, you are deemed to be the owner of the truck and can therefore claim capital allowances. As VAT is payable on the purchase price, Isuzu Truck Finance will ask for the VAT element to be paid as a deposit.
A Contract Purchase Plan is similar to Hire Purchase, but at the end of the contract you have the option to pay the agreed residual value or return the truck with no further payments subject to fair wear and tear and the agreed mileage not being exceeded.
Isuzu Truck doesn’t currently offer contract hire directly as we prefer to recommend specialist third party contract hire providers. There are many such companies offering contract hire here in the UK. Contract Hire offers businesses a smart, seamless package of services which allows you to acquire Isuzu trucks without capital outlay or the financial risk of depreciation. Furthermore, with contract hire you can ensure that all of your costs for running the vehicle are covered in a single monthly payment which includes all servicing, maintenance, tyres, administration, vehicle taxation and documentation*.
*Excludes costs for driver, fuel and insurance. Contract package includes all maintenance and repairs subject to reasonable fair wear and tear.