Makers' finance deals for LCVs
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• Vauxhall has extended its "Choices 1-2-3" finance package to light commercial sales. The scheme reduces monthly payments for the buyer and offers a guaranteed trade-in value at the end of the scheme—a period of up to three years or 80,000 miles. The buyer can then end the agreement at no cost, buy the vehicle at the agreed value, or trade it in toward a new model.
Vauxhall's move has pre-empt ed a national launch by Ford, whose pioneering "Options" scheme, successfully established in passenger car sales, is being introduced gradually into the LCV market. Ford Credit, which also offers several alternative purchase plans, stresses that plans such as Options are not personal leasing schemes (which can attract VAT) but tax-efficient hire-purchase arrangements.
Both the Vauxhall and Ford schemes rely on a predictable buy-back value, so there are limitations on mileage and the use to which a vehicle can be put. Both companies' terms vary according to the projected mileage: Ford's goes up to an annual maximum of 24,000 miles.
Mercedes Benz operates a similar scheme—the Finance/Mileage Contract—which is also available for approved used commercials up to four years old.