Vehicle Leasing For Franchisees


Franchisees, How CVM can help your business.

Whether your franchise has a group vehicle policy or leaves those decisions to you, CVM can help you control your costs. We supply and finance cars, vans, trucks and equipment to franchise holders throughout the U.K. If your franchise has a relationship with CVM we can quickly and easily have you ready to go to work.

If your franchise has not set up an exclusive deal with CVM, we can still offer great value because our buying power allows you as an individual to access offers usually only open to a fleet operation.

Options for Cars and Vans

It's horses for courses when deciding the ideal vehicle for your franchise. At CVM we have experience in both the commercial vehicle and car markets. We know both inside out and will be able to help you make the best decision when choosing your vehicles.

Maintenance options.

If your franchise relies on having vehicles on the road at all time, you can ensure your car or van is always on the road with our range of maintenance packages. Choose from main dealer servicing or service through national chains. Both options provide franchisees with fixed costs on their servicing and maintenance. With servicing costs taken care of in advance you know that there is no reason for your vehicles to be anything other than perfectly roadworthy at all times.

Pre-Registered and 2nd Hand

Sometimes a new car is not the answer for your business. We have a range of used cars in stock and available to view in our indoor showroom or on-line here. In addition to this we are frequently offered "pre-registered" cars from manufacturers. These are cars that are built and need to be registered, and as such are brand new but significantly cheaper in most cases

How can I fund my vehicle

Personal Contract Purchase (PCP)

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Personal Contract Purchase (PCP) offers lower monthly costs with the ability to own your car outright at the end of the contract.

When we calculate your monthly payment; your deposit and Guaranteed Future Value (GFV) are taken into account. GFV is a deferred payment, specific to every vehicle and taking agreed mileage into account. It allows for significantly reduced monthly payments when compare with a traditional Hire Purchase Agreement. This in turn allows you to choose a better vehicle.

At the end of the period of hire you can choose whether to settle the GFV and take full ownership of your vehicle or choose from a range of other options including:

  • Use your car for Part Exchange on your next vehicle
  • Sell Privately and use the proceeds to settle the GFV
  • If the vehicle market at the time means the car is worth less than the GFV, simply hand it back with nothing more to pay (subject to condition and mileage).

Contract Hire

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Contract Hire is a suitable for companies and individuals registered for VAT. The main advantage is that the VAT portion is up to 100% recoverable.

If VAT registered the VAT portion of your payment is 100% recoverable if the vehicle is used solely for business use. This figure drops to 50% if the vehicle is also available to the driver for personal use.

The vehicle will be hired for a set period of time, typically between 12 and 60 months and monthly rentals are set based on agreed mileages.


the other main advantage for VAT registered companies is that up to 100% of your rental can be offset against your companies taxable profits.

Other benefits of Contract hire Include:

  • There is no risk of a depreciation leaving you with an unexpected cost in the future. With no ownership risk on your part all you need to adhere to is mileage restrictions and wear and tear regulations to ensure your monthly costs are all you will pay.
  • The option to have all your maintenance costs included in your monthly rental
  • Reduced administration of your vehicles. For example all tax discs are automatically sent to you as required.
  • Your payment is purely a rental so sits off your balance sheet avoiding being classed as a depreciating asset

Hire Purchase

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Hire Purchase (HP) is a simple way to spread the cost of your vehicle over a set period. At the end of the finance period you own the vehicle outright with nothing more to pay.

Because HP payments lead to the full cost of the vehicle being settled by the end of your contract, monthly payments will be higher than the same car funded using Personal Contract Purchase (PCP) product. The advantage is that with no deferred balloon payment attracting interest over the term of the loan, the full amount paid and total cost of credit is lower than the cost would have been with a PCP.

Lease Purchase

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Lease Purchase (LP) can be described as a Hire Purchase agreement with a balloon. Although similar to Personal Contract Purchase (PCP) there are some significant differences to be aware of.

Lease purchase offers the lower monthly costs associated with a deferred payment balloon product in the same way as PCP does. It is typically used only when PCP is not available for a particular car or contract requirement. Typically this will be down to the age of the car or your mileage requirements.


Your balloon payment to be settled at the end of the contract is still calculated on the same terms as with PCP, however the final value is not guaranteed. In effect this means that the balloon payment must be settled or refinanced by yourself. This is not typically a cause for concern because, as mentioned, balloons are still calculated taking your mileage and the age or your car at the end of the contract into account. When setting this final amount, there is no benefit to the funder for your car to be worth less than the balloon. If you default on the loan and the car is repossessed, the funder will not want to be unable to recover outstanding costs by selling your vehicle, so it should be about right.

Finance Lease

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Finance lease provides the option for VAT registered users to pay for vans off balance sheet, spreading the cost of the VAT to the montly payment rather than requiring payment up front as is the case with a purchase product.

You can choose to rent your van with or without balloon payment due at the completion of the initial lease period, monthly payments will be reduced during the rental if you choose the balloon option.


Once the initial lease period has ended you will have the option to sell the van on behalf of the finance company and pay them a percentage of the profits, or extend the lease, paying only a peppercorn rental.


Note that if you chose the balloon payment option to reduce your rental, this will need to be settled as part of either of these options.


So what next?

Call our team on 01489 880050 to get started. Send us an email from our contact page or, if you already have a good idea of your vehicle requirements, fill out as much of the quick quote form below as possible and we will swing into action.

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