INITIAL DISCLOSURE DOCUMENT

Synergy Automotive Limited is authorised and regulated by the Financial Conduct Authority (FCA), registered number 660618. You can check this on the FCA website at www.fca.org.uk or by calling them on 0800 111 6768.  Our permitted business is credit brokerage, debt counselling, debt administration and debt adjusting. We are not a lender.

If you are a private individual, a sole trader or a partnership of less than 4, the provision by us of our broker services to you in accordance with this initial disclosure document (“IDD”) and our standard terms and conditions, which are attached to this IDD (“Terms”), is classed a regulated activity (“Regulated Services”). If you are anything other than a private individual, sole trader or partnership of less than 4, our services will not be a regulated activity (“Unregulated Services”).

OUR SERVICES AND CHARGES

What services 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.

We are paid a commission which may be pre-set but can vary by finance provider, and may affect the amount payable by you and the amount of the vehicle’s monthly rental.

If you are a regulated customer (private individual, sole trader or small partnership with 2-3 partners), and before the finance agreement is set live, you have the right to request the disclosure of any applicable commission we earn on your finance agreement.

To request this, please email [email protected], call us on 0333 920 1545 or you can write to us at: Synergy Car Leasing, Hornbeam Park Oval, Hornbeam Park, Harrogate HG2 8RB.

We will make recommendations to you based on the information you provide to us. 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, which starts from £245+ VAT (£294 inc 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.

In certain circumstances our income will be generated from an increased fee amount. This will be clearly identified to you prior to any commitment and order. We may also charge a fee if you wish to extend the contract on your current vehicle, with 6 month extensions having a £50 + VAT (£60 inc VAT) fee and 12 month extensions having a £82.50 + VAT (£99 inc VAT) fee. We may require a holding deposit to secure against your order based on the supplier’s requirements. We require this payment via BACS before we are able to order your vehicle.

You are responsible for any parking and motoring offences committed whilst the vehicle is in use either by you or any other person you permit to drive the vehicle. To the extent we are required to carry out any administrative duties in relation to any fines or other charges imposed on you or a third party in respect of such offences, we reserve the right to charge you an administrative fee from £9.99 + VAT (£11.99 inc VAT) for any fines or other charges.

Cancellation charges

We will charge a cancellation fee as set out in our Cancellation Policy for services already provided.

If you are a receiver of Regulated Services and choose to cancel your vehicle order, you will be liable for the costs of any service delivered which will be equal to one month’s rental (inc VAT) of the vehicle ordered, and in addition our vehicle sourcing charge is non-refundable if you choose to cancel your order for any reason after 14 days of the point of order.

If you are a receiver of Unregulated Services, you will be liable for the costs of any service delivered which will be equal to three months’ rental (inc VAT) of the vehicle ordered, and in addition our vehicle sourcing charge is non-refundable if you choose to cancel your order for any reason at any time. 

For short-term lease and daily rental vehicles, cancellation charges will apply if the vehicle is returned prior to the minimum contract agreement.  There will be a cancellation charge of £100 +VAT (£120 inc VAT) per vehicle plus any outstanding days’ rental owed at the lower rate if applicable.

FINANCING OPTIONS FOR BUSINESSES

There are various finance leasing options available 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.  The vehicle appears 'off the balance sheet' as it remains the property of the leasing provider.  The Road Fund Licence 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

FINANCING OPTIONS FOR PRIVATE INDIVIDUALS

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 appreciation or 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 http://www.bvrla.co.uk/advice/guidance/returning-your-leased-vehicle
• If you exceed your agreed mileage, a charge will apply
• It is your responsibility to insure the car with fully comprehensive cover

*More information can be found within the supplementary document titled “Synergy Important Information about Your Leasing Agreement”

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.  Most credit decisions are automated.  You have the right to opt-out of automated decision making, and if you do we will be unable to accept your order and unable to apply for finance for you.

We may also run a soft search (preliminary credit search) prior to submitting your application to our finance providers. This will not affect your credit rating. This helps to check if you are eligible for finance and helps to protect your credit score, although it does not guarantee finance acceptance as there may be other factors taken into account such as eligibility, status or affordability.

Synergy Automotive Ltd trading as Synergy Car Leasing is registered with the Information Commissioner’s Office 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, Hornbeam Park Oval, Hornbeam Park, Harrogate HG2 8RB

By phone: Telephone 01423 228 280

By email: Email [email protected]

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 here.

Registered Address:                                        

Synergy Automotive Limited

140 Aldersgate Street                                 

Barbican                                                       

London                                                          

EC1A 4HY   

Trading Address:

Synergy Car Leasing 

I2A Hornbeam Park Oval

Hornbeam Park 

Harrogate HG2 8RB

Synergy Automotive Limited trading as Synergy Car Leasing is a Registered Company in England - Company No 6015644.

Vat Registration No 897 7937 28

www.synergycarleasing.co.uk

Key Contacts:

In the first instance, please contact your dedicated Account Manager. 

Navinder Singh Aujla, Compliance Manager

[email protected]

Direct Dial: 01423 228 139

Laura-Jayne Josling, Customer Service Manager

[email protected]

Direct Dial: 01423 647 431