Bidvest Bank Fleet
Our fleet finance capability is built to cover the widest range of assets in fleets. Our options address the varied requirements that businesses have at different points in their growth. They can improve cashflow by converting ownership to a monthly expense, allow either on-or-off-balance sheet expenses and provide options for dealing with tax.
In cases where vehicle finance is better treated as an operating expense, for example to reduce the company tax liability or to set a fixed monthly cost, we offer a full maintenance lease. This covers a company vehicle for normal wear and tear and all routine services. This eliminates the cost of losing resale value since the vehicle is leased. We also offer flexible agreements where the lease can be restructured if circumstances change.
Benefits:
- Reduces monthly rentals because payment is for usage only.
- Reduces administration.
- Improves asset and gearing ratios.
- Accepted by auditors as being off balance sheet.
- Allows VAT claim for maintenance goods for passenger vehicles.
- Allows VAT claim for the total rental for commercial vehicles.
Financial lease & instalment sale
We offer two ways to finance business vehicles without an upfront deposit, both of which allow the company or the car allowance recipient to take ownership at the end of the contract. The main difference between the two is the manner in which a deduction against income tax can be claimed. A financial lease enables the business to claim the sum of the actual repayments made during the tax year. An instalment sale allows the business to claim a wear-and-tear allowance plus finance charges. The wear-and-tear allowance is generally 20% per annum (5 years straight-line depreciation).
Managed maintenance
To further reduce the administration burden of fleet maintenance, we are able to manage and pay maintenance costs by using a pre-paid fund. Our industry relationships and knowledge give us access to true parts and labour pricing, warranty policies as well as volume discounts. We use these to substantially reduce maintenance and repair costs and pass the benefit onto the fleet operator. Pre-authorisations enable us to agree on repair and maintenance costs before work is carried out. At the end of the contract, any surpluses will be refunded and shortfalls recovered.
Benefits:
- Reduced administration.
- Real cost reduction.
- Parts and labour discounts.
- Price certainty.
- Optimum resale value.
- VAT input credits on all maintenance expenses.
- No unnecessary parts and labour.
- Fleet discounts on parts, tyres and services.
- Maximum benefits from warranties and policy claims.