INITIAL DISCLOSURE DOCUMENT

Synergy Automotive Limited trading as Synergy Car Leasing is authorised and regulated by the Financial Conduct Authority (FCA), registered number 660618.  You can check this on the Financial Conduct Authority Register by visiting the FCA website at www.fca.org.uk or by calling 0800 111 6768.  Our permitted business is credit brokerage, debt counselling and debt adjusting. Synergy Automotive Ltd trading as Synergy Car Leasing is a credit broker and not a lender.

KEY FACTS FOR BUSINESSES

There are various finance leasing options available to businesses, including corporations, SMEs, public sector organisations, sole traders and limited companies.  These include:

Business Contract Hire (BCH)

Business Contract Purchase (BCP)

Business Finance Lease

Business Lease Purchase

Below are the key facts and considerations you should take into account when considering these financial products for your business.

Business Contract Hire (BCH)

Business Contract Hire (BCH) is suitable for sole traders, partnerships, PLCs and limited companies.  VAT registered companies can claim back 50% of the VAT on the cost of leasing the vehicle.  The vehicle appears 'off the balance sheet' as it remains the property of the leasing provider.  The Road Fund License is included within the cost of the monthly payments and once the term of the agreement ends the vehicle is simply returned to the leasing provider.

Advantages of Business Contract Hire (BCH):

  • The finance provider remains the owner of the vehicle, removing the risk of depreciation and disposal costs
  • VAT registered businesses can claim back 50% of the VAT
  • Fixed monthly rentals for the term of the lease
  • Low initial payment
  • Flexible options to meet your budget and driving requirements
  • Maintenance packages with monthly payments spread the cost of servicing and repairs
  • Road tax is included in the monthly costs
  • Manufacturers’ warranties apply

 Considerations of Business Contract Hire (BCH):

  • The vehicle must be maintained in accordance with the manufacturers’ requirements
  • At the end of the term, the vehicle must be returned in line with the lease company’s Fair Wear and Tear policy
  • If you exceed the agreed mileage, a charge will apply
  • There is no option to purchase the vehicle, it must be returned
  • It is your responsibility to insure the car with fully comprehensive cover
  • It can be expensive to terminate your contract early

Business Contract Purchase (BCP)

Business Contract Purchase (BCP) is suitable for VAT registered businesses.  An initial deposit is required along with the monthly payments and, at the end of the agreement, the organisation has the option to purchase the vehicle through a balloon payment, the cost of which is agreed at the start of the contract.  In some instances, it may also be possible to extend the term of the agreement.

Advantages of Business Contract Purchase (BCP):

  • Great for businesses wanting the option to purchase the vehicle
  • The value of the vehicle can be put against taxable profits
  • Fixed monthly payments for the term of the agreement
  • Low initial payment
  • A flexible option to meet your budget and driving requirements
  • There is no VAT to pay on monthly finance payments, but VAT is applicable on any maintenance plans taken out
  • The balloon payment is agreed at the start of the lease, meaning there is no risk of negative equity (providing mileage is not exceeded and the vehicle meets fair wear and tear guidelines)
  • Individuals have the option to either keep the vehicle or hand it back at the end of the contract
  • Road tax is included for the first year of the agreement
  • At the end of the lease, it may be possible to finance the balloon payment in monthly instalments, subject to credit acceptance
  • At the end of the lease individuals can purchase the vehicle at the agreed price, sell or return the vehicle

Considerations of Business Contract Purchase (BCP):

  • The vehicle must be maintained in accordance with the manufacturer’s requirements
  • At the end of the term, the vehicle must be returned in line with the lease company’s Fair Wear and Tear policy
  • If you exceed your agreed mileage, a charge will apply
  • It is your responsibility to insure the vehicle with fully comprehensive cover
  • It can be expensive to terminate your contract early

Business Finance Lease

Finance lease is a popular option for businesses as it offers significant tax advantages.  It is suitable for limited companies, partnerships, the self-employed and sole traders.  The vehicle can be leased in one of two ways.  Option one is to pay the cost of the entire vehicle over an agreed period.  Option two is to pay lower monthly payments, with a balloon payment at the end of the term.  Up to 50% of the VAT can be reclaimed by VAT registered companies, and the vehicles will show as an asset on your balance sheet.

Benefits of a Finance Lease:

  • Fixed monthly payments
  • Low upfront costs
  • VAT registered businesses can claim up to 50% of the VAT on cars, and up to 100% on commercial vehicles (certain rules apply)
  • Non-VAT registered businesses can spread the cost of the VAT as part of their monthly payments
  • No excess mileage charges
  • Payments can be offset against taxable profits with VAT only payable on the rentals and not the purchase price (certain rules apply)
  • Although you will not own the vehicle at the end of the agreement, if the vehicle is sold to a third party you will receive 98% of sale proceeds, with 2% paid to the finance company

Considerations of a Finance Lease:

 At the end of the lease, you will have done ONE of the following:

  • Paid the total amount payable of the lease contract, including the initial rental, any fees, all regular monthly payments and the final balloon payment. You will not own the vehicle.  The finance provider may also charge an agreed percentage of the sale proceeds. This is not a purchase agreement
  • Opted to continue to make regular monthly payments, you must pay the balloon payment and operate the vehicle under a peppercorn agreement, also known as a secondary rental agreement.
  • Sold the vehicle to a third party on behalf of the finance provider. You may benefit if the vehicle is sold for more than the balloon amount, however, if the sale price is less than the balloon amount, you are responsible for the difference between the balloon and the sale value.  The finance provider will also make a percentage charge of the sale proceeds

Business Lease Purchase

Business Lease Purchase is purely a finance package for those organisations who eventually want to buy the vehicle.  This is a less popular option because it is less flexible than other business finance packages.  The organisation must take ownership of the vehicle by making a balloon payment at the end of the term. 

Benefits of Business Lease Purchase:

  • The vehicle will belong to your company once the lease purchase contract has started
  • The vehicle is registered in the name of your company
  • A slower depreciation of the vehicle
  • The vehicle will be a company asset and appear on the balance sheet meaning the value of the vehicle can be offset against taxable profits
  • Low deposit and fixed monthly payments
  • Monthly payments are not subject to VAT

Considerations for a Business Lease Purchase:

  • Business Lease Purchase is a pure finance package
  • The vehicle must be purchased at the end of the contract term through a balloon payment which may be higher than the value of the vehicle
  • The vehicle must be insured with fully comprehensive cover
  • There is no option to return the vehicle at the end of the agreement

KEY FACTS FOR PRIVATE INDIVIDUALS

There are various finance leasing options available for private individuals.  These include:

Personal Contract Hire (PCH)

Personal Contract Purchase (PCP)

Personal Lease Purchase (PLP)

Below are the key facts and considerations you should take into account when considering these personal financial products.

Personal Contract Hire (PCH)

With Personal Contract Hire (PCH) you never actually own the vehicle, you simply hand it back at the end of the leasing agreement. 

Advantages of Personal Contract Hire (PCH):

  • PCH is a rapidly growing way for individuals to acquire a new vehicle
  • Fixed monthly rentals for the term of the lease
  • Low initial payment
  • Flexible options to meet your budget and driving requirements
  • No used car to worry about depreciation or to sell at the end of the agreement
  • High value vehicles are often much more affordable compared to purchasing them
  • Maintenance packages with monthly payments spread the cost of servicing and repairs
  • Road tax is included in the monthly costs
  • Manufacturers’ warranties apply

Considerations for Personal Contract Hire (PCH):

  • There is no option to purchase the vehicle, it must be returned
  • The vehicle must be maintained in accordance with the manufacturer’s requirements
  • At the end of the term, the vehicle must be returned in line with the lease company’s fair wear and tear policy 
  • If you exceed your agreed mileage, a charge will apply
  • It is your responsibility to insure the car with fully comprehensive cover

 Personal Contract Purchase (PCP)

With Personal Contract Purchase (PCP), private individuals have the option to purchase the vehicle at the end of the contract term by paying the Guaranteed Minimum Future Value (GMFV), also known as a 'balloon payment'.  There are a number of flexible options to choose from at the end of the agreement:

  • Simply hand back the vehicle with no further liability
  • Become the legal owner of the vehicle by paying the Guaranteed Minimum Future Value (GMFV), or balloon payment
  • Refinance the GMFV amount and enter into a secondary leasing agreement, subject to status

Advantages of Personal Contract Purchase (PCP):

  • Great for those individuals wanting the option to purchase the vehicle
  • Fixed monthly payments for the term of the lease
  • Low initial payment
  • Flexible options to meet your budget and driving requirements
  • The balloon payment is agreed at the start of the lease, meaning there is no risk of negative equity
  • Individuals have the choice to either keep the car or hand it back at the end of the contract
  • Road tax is included for the first year of the agreement
  • At the end of the agreement, it may be possible to finance the balloon payment in monthly instalments, subject to credit acceptance

Considerations of Personal Contract Purchase (PCP):

  • The vehicle must be maintained in accordance with the manufacturer’s requirements
  • At the end of the term, the vehicle must be returned in line with the lease company’s Fair Wear and Tear policy
  • If you exceed your agreed mileage, a charge will apply
  • It is your responsibility to insure the car with fully comprehensive cover
  • It can be expensive to terminate your contract early

Personal Lease Purchase (PLP)

With a Personal Lease Purchase (PLP) you agree to take ownership of the vehicle at the end of the agreed term - there is no option to return it.  Due to the lack of flexibility, this option tends to be less popular.  An initial deposit is required, followed by fixed monthly payments plus a balloon payment at the end of the term.

Advantages of a Personal Lease Purchase (PLP):

  • Fixed monthly payments for the term of the lease followed by a balloon payment
  • No VAT to pay on monthly payments
  • Low deposit
  • Full ownership of the vehicle when all payments are made

Considerations of a Personal Lease Purchase (PLP):

  • PLP is a finance package only – there are no guarantees regarding the value of the vehicle at the end of the contract
  • You must take ownership of the vehicle at the end of the term
  • There is no option to return the vehicle 

CONSUMER CREDIT SERVICES

The Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) is the independent watchdog that regulates financial services.  You can use this information to help you decide if our services are right for you.  Synergy Automotive Limited trading as Synergy Car Leasing is authorised and regulated by the Financial Conduct Authority (number 660618) and is permitted to advise on and arrange consumer credit contracts.  

WHAT CONSUMER CREDIT PRODUCTS DO WE OFFER?

Synergy Automotive Limited trading as Synergy Car Leasing offers a range of vehicle finance products from a carefully selected number of finance providers, from whom we may receive a fee or commission.

WHICH SERVICE WILL WE PROVIDE YOU WITH?

We will make recommendations to you based on the information you provide us with.  We may seek information from you based on your personal circumstances and objectives.  It is therefore important that you provide us with accurate and relevant information so that we can make suitable recommendations on the type of vehicle finance agreement that best suits your needs.

WHAT WILL YOU HAVE TO PAY US FOR OUR SERVICES?

We charge a vehicle sourcing fee from £150 + VAT to source your vehicle and cover our administration costs.  This fee is taken on confirmation, in writing or by text, of your acceptance of the terms of our offer.  This fee can be paid by debit card, credit card, or by bank transfer. 

WHO REGULATES US?

Synergy Automotive Limited trading as Synergy Car Leasing is authorised and regulated by the Financial Conduct Authority.  Our registered address is Synergy Automotive Ltd, 3365 Century Way, Thorpe Park, Leeds LS2 9PG.  Our trading address is: Synergy Car Leasing, I2A Hornbeam Park Oval, Hornbeam Park, Harrogate HG2 8RB.    

Our FCA number is 660618. You can check this by visiting the Financial Conduct Authority website or by calling 0800 111 6768.

CONFIDENTIALITY AND DATA PROTECTION

In order to obtain finance for your vehicle, we will pass your details on to one or more of our finance providers.  A list of our finance providers can be made available on request.  The finance provider will normally undertake a credit search with a credit reference agency, which may affect your credit rating.  Synergy Automotive Ltd trading as Synergy Car Leasing is registered with the Information Commissioner’s Office, registered Data Protection Number: Z9922966.

WHAT TO DO IF YOU HAVE A COMPLAINT

If you wish to register a complaint, please contact us:

In writing: Write to Synergy Car Leasing, I2A Hornbeam Park Oval, Hornbeam Park, Harrogate HG2 8RB

By phone: 01423 228280

By email: contactus@synergycarleasing.co.uk

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.  This depends on the type of business and the circumstances of the claim.  

Synergy Automotive Ltd trading as Synergy Car Leasing is a member of the British Vehicle Rental and Leasing Association (BVRLA) and you may be entitled to use their Conciliation Service.  

Our full complaints procedure can be viewed on our website below. 

Registered Address:

Synergy Automotive Limited
3365 Century Way
Thorpe Park
Leeds
LS15 8ZB

Trading Address:

Synergy Car Leasing
I2A Hornbeam Park Oval
Hornbeam Park
Harrogate
HG2 8RB

Synergy Automotive Limited is a Registered Company in England - Company No 6015644.

Vat Registration No 897 7937 28

www.synergycarleasing.co.uk

KEY CONTACTS:

Gemma Manning, Client Services Director
gemma@synergycarleasing.co.uk
Direct dial: 01423 228293

Will Voisey, Sales Manager
will@synergycarleasing.co.uk
Direct dial: 01423 228293

Navinder Singh Aujla, Compliance Officer
navinder@synergycarleasing.co.uk
Direct dial: 01423 228293