Leasing finance comparison chart
Trying to work out which leasing option is right for you can be tricky. This helpful chart will let you compare the different finance options at a glance.
Visit our pages on leasing finance, for more details on each finance type.
| Comparison | Contract Hire | Contract Purchase | Lease Purchase | Finance Lease | PCP | PCH |
| Accurate monthly budgeting | Yes | Yes | No | No | Yes | Yes |
| Is VAT chargeable on payments? | Yes | No | No | Yes | No | Yes |
| Is VAT reclaimable on payments? | Cars 50% Vans 100% |
NA | NA | Cars 50% Vans 100% |
No | No |
| Are interest rates fixed? | Yes | Yes | Yes | Yes | Yes | Yes |
| Are payments offset against Corporation Tax? | Partially | Captial allowances | Capital allowances | Partially | No | No |
| Does the customer own the vehicle at the end of the contract? | No | Optional | Yes | No | Optional | No |
| Who carries the residual value risk? | Finance company | Finance company | Customer | Customer | Finance company | Finance company |
| Is there a depreciation risk? | No | No | Yes | Yes | No | No |
| Can maintenance be included? | Yes | Yes | No | No | Yes | Yes |
| Is a Road Fund Licence provided? | Yes, for the entire contract | Yes, for the entire contract | Yes, for the first year | Yes, for the first year | Yes, for the first year | Yes, for the entire contract |
| Is there a Balloon / Final Payment? | No | Optional | Yes | Yes | Optional | No |
Visit our pages on leasing finance, for more details on each finance type.
