IVECO CAPITAL: YOUR GATEWAY TO THE WORLD OF IVECO

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1 IVECO CAPITAL: YOUR GATEWAY TO THE WORLD OF IVECO

2 SPECIALIST KNOWLEDGE AND EXPERTISE For over 20 years we have supported the sales of Iveco products, funding the complete range of light, medium and heavy commercial vehicles with tailor-made financial services. Our principal aim is to help customers fund their vehicles in the most beneficial manner for their individual operations, using our expertise in the industry and financial strength as a member of the Iveco Group, which is in turn part of the Fiat Group - one of the world s largest organisations. A TRULY GLOBAL PARTNER Iveco Capital operates in 14 countries and provides support to Iveco customers in all of the main European markets, supplying a range of flexible financial products and services tailored to help operators realise the maximum benefit from their commercial vehicle fleet. To-date Iveco Capital has provided its services to more than 55,000 customers, ranging from owner-operators through to multi-national blue-chip companies. This has seen in excess of 112,000 vehicles delivered to customers supported by a range of financial services from Iveco Capital, including Contract Hire, Finance Lease, Hire Purchase and Operating Lease. READY TO RESPOND Our products are available across a nationwide network of Iveco dealers and have been created by industry experts who understand every aspect of the road transport business. This ensures we offer you tailor-made solutions that enable you to make your commercial vehicles work hard for your business, whilst benefiting from a bespoke financial solution designed to meet your company s specific requirements.

3 HIRE PURCHASE: A TAILOR-MADE SOLUTION Hire Purchase is popular with operators looking to acquire ownership of the vehicle. It can cover up to 100% of the vehicle s selling price and enables you to take delivery of the asset straight away, but with payments spread over the life of the vehicle and the option of keeping the asset at the end of the term for a nominal fee. Payments can be tailored to suit the cash FINANCE LEASE: YOUR MULTIPLE BENEFITS Finance Leases enable you to lease Iveco vehicles without making a capital outlay that impacts upon your cash flow and balance sheet, allowing you to dedicate your financial resources to your core business. It means that vehicles are hired to you for a fixed period without the option of ownership, and at the end of the primary period you may choose to continue to rent the asset for a further period at a nominal rate or to act as an agent in its disposal.this means you have the option to sell the vehicle on our behalf and keep the majority of the proceeds. flow needs of your business, making budgeting easier as the payment structure is agreed with you at the outset. Acquiring new vehicles under a Hire Purchase agreement also has tax advantages, in that you claim the writing down allowances and the interest elements of the repayments are allowable against taxable profits. OPERATING LEASE: ONE RENTAL, MANY ADVANTAGES An Operating Lease is a financial agreement where the asset is treated as an off balance sheet item and Iveco Capital retains ownership of it. Customers selecting this option agree to specific usage parameters for the vehicles at the outset - and assuming these do not vary significantly, the monthly payments and interest are fixed for the duration of your contract. The prime advantage of this arrangement is that rentals are significantly lower than under a Finance Lease, because the vehicle s residual value is included in the transaction. At the end of the agreement CONTRACT HIRE: TOTAL FLEET SOLUTION Contract Hire is the complete fleet solution and provides you with off balance sheet funding without the burden of ownership or disposal. It offers all the benefits of Operating Lease financing, comprehensive repair and maintenance, and fleet management services - all of this for a fixed monthly payment, thus improving your budgeting and cash flow projections.with our Contract Furthermore, for Finance Leases of five years or less, as Iveco Capital remains the owner of the asset, we claim the writing down allowance and the benefit is passed to you in your rental payments. Your cash flow is eased still further because you pay VAT on the monthly repayments, not on the principal purchase cost. In addition,you claim tax relief on the rental based on the finance charge and depreciation charge through your profit and loss account. you can choose to extend the agreement or simply return the vehicle to us. For Operating Leases of five years or less,we have the legal and tax title to the asset allowing us to make effective use of writing down allowances, which we pass on to you within the rental. In addition, you claim tax relief on the whole rental amount through your profit and loss account. Your cash flow is eased still further because you payvat on the monthly repayments, not on the principal purchase cost. Hire you will be able to benefit from reduced administrative burden, you will also enjoy peace of mind through the provision of one-stop-shop repair and maintenance solutions that can be flexibly combined with our total fleet management options. Last but not least, our expert team will make sure that your Contract Hire package is tailored to suit your business needs.

4 HELPING YOU TO MAKE THE RIGHT DECISION

5 WHATEVER YOUR BUSINESS NEEDS, WE WILL PROVIDE A BESPOKE SOLUTION Just follow this simple decision tree to help you decide which type of finance is most suitable for your needs. The table below will help you to identify the key features and benefits of each product at a glance. YES Hire Purchase Do you want to own the vehicle? YES Finance Lease NO Do you want the vehicle to be shown as an asset in your accounts? NO Operating Lease NO Do you need Repair & Maintenance or Fleet Management Services? YES Contract Hire Funding for new and used vehicles Ownership of vehicle Negotiable agreement period Low initial capital outlay and rentals tailored Fixed and predictable monthly payments Lower monthly payments Maximum cash flow benefits Asset off balance sheet VAT paid at the start Claim Writing Down allowances Rentals tax deductible VAT paid on rentals No disposal problems No depreciation risk Reduced administration Repair & Maintenance options Fleet management options

6 HIRE PURCHASE

7 A TAILOR-MADE SOLUTION Hire Purchase is an ideal choice if you are looking for vehicle ownership, allowing you to spread the payments for a vehicle. Once all of the payments have been made you own the vehicle. You effectively hire a vehicle from Iveco Capital for an agreed fixed term at the end of which, upon payment of an agreed nominal Option to Purchase fee, ownership passes to you. Whilst legal title in the asset will belong to Iveco Capital until the end of the agreement, you would be the Registered Keeper and may show the asset on your balance sheet plus claim the appropriate capital allowances. Your cash-flow benefits as you do not need to use your cash resources to make a capital outlay for the total purchase price of the asset up front. Payments can be tailored to suit the cash flow needs of your business, making budgeting easier as the payment structure is agreed with you at the outset. Acquiring new vehicles under a Hire Purchase agreement also has tax advantages, in that you claim the writing down allowances and the interest elements of the repayments are allowable against taxable profits. Lease Purchase Lease Purchase is very similar to Hire Purchase with the added benefit of allowing you to defer a proportion of the vehicle s value to the end of the agreement. At the end of the agreement you can own the vehicle. Key Features and Benefits at a glance: Ownership at the end of term upon payment of a nominal Option to Purchase fee On balance sheet Capital allowances can be claimed Repayments can be matched to the pattern of your cash-flow To find out more about how Iveco Capital Hire Purchase can benefit you and your business, please contact your local dealer or call the Iveco Capital team on

8 FINANCE LEASE

9 MULTIPLE BENEFITS FOR YOUR BUSINESS With a Finance Lease agreement, a vehicle is hired to you for a fixed period without the option of ownership. You take advantage of leasing Iveco vehicles without making a capital outlay that impacts your cash flow and balance sheet. This means you can channel financial resources into your core business. The vehicle is hired to you for a fixed period, at the end of which you may choose to continue to rent the asset for a further period at a nominal rental or to act as an agent in the disposal of the asset, selling it and retaining most of the cash proceeds. For Finance Leases of five years or less, we have the legal and tax title to the asset, allowing us to make effective use of writing down allowances, which we pass on to you within the rental. You claim tax relief on the rental based on the finance charge and depreciation charge through your profit and loss account. Your cash flow is eased still further because you pay VAT on the monthly repayments, not on the principal purchase cost. VAT on monthly rentals is claimable. For Finance Leases beyond five years, where certain criteria are fulfilled, the entitlement to writing down allowances transfers to you. Key Features and Benefits at a glance: Low initial capital outlay Flexible and tax efficient vehicle funding Improved cash flow Option to extend the term At the end of the lease agreement you can sell the asset and retain most of the sales proceeds VAT payable on the rentals and not the purchase cost of the asset Rentals allowable against the taxable profits. To find out more about how Iveco Capital Finance Lease can benefit you and your business, please contact your local dealer or call the Iveco Capital team on

10 OPERATING LEASE

11 ONE RENTAL, MANY ADVANTAGES With an Operating Lease agreement you can enjoy the use of vehicle without the risk of ownership, as the vehicle is treated as an off balance sheet item. Monthly rentals are based on the difference between the price of the vehicle at the start of the agreement and its projected residual value, plus finance charges. Therefore only a proportion of the vehicle's value is being repaid which avoids any large initial outlay and reduces the monthly rental, improving your cash flow situation. At the end of the term you can choose to extend the agreement or simply return the vehicle, leaving Iveco Capital to dispose of the vehicle, thus freeing you from any further obligations apart from any excess mileage or damage charges, if applicable. We offer a fixed initial term, but with built-in flexibility. This means we can match the term of the finance to the length of a contract and, in the event of you having further need of keeping the vehicle, we offer attractive terms for extension. For Operating Leases of five years or less, we have the legal and tax title to the asset, allowing us to make effective use of writing down allowances, which we pass on to you within the rental. In addition, you claim tax relief on the whole rental amount through your profit and loss account. For Operating Leases beyond five years, where certain criteria are fulfilled, the entitlement to writing down allowances transfers to you. Your cash flow is eased still further because you pay VAT on the monthly repayments, not on the principal purchase cost. Key Features and Benefits at a glance: Monthly rentals reduced, based on guaranteed residual values Improved cash flow Low initial capital outlay No asset ownership risk Off balance sheet Flexibility to extend the lease term Tax efficiency rentals allowable against the taxable profits VAT on the monthly repayments, not on the principal purchase cost To find out more about how Iveco Capital Operating Lease can benefit you and your business, please contact your local dealer or call the Iveco Capital team on

12 CONTRACT HIRE

13 TOTAL FLEET SOLUTION Iveco Capital Contract Hire is your complete fleet solution encompassing all the benefits of flexible finance, comprehensive repair and maintenance and fleet management. There are various service levels available to make sure the package is tailored to your business needs. A single monthly rental may include RFL fees and management, Repair and Maintenance of chassis and ancillary equipment, scheduled event management, collection and delivery for scheduled maintenance and much more. Rentals are fixed for the contract term and at the end of this period you simply return the vehicle and we will take care of disposal. Our Contract Hire can benefit your business in a number of ways. The Financial features and benefits include: Low initial capital outlay Off balance sheet funding Predictable and fixed monthly payments Improved budgeting and cash flow Reduced administration Rental payment allowable against taxable profits in full From the Operational point of view you will be able to enjoy: Comprehensive operational support Single point of contact for all your needs National network of service points No vehicle disposal risk Peace of mind to concentrate on your core business activities O-licence compliance management Service and Fleet Management features and benefits can include: Comprehensive chassis Repair & Maintenance programme Repair & Maintenance of bodywork and ancillary equipment 24/7 UK and European breakdown cover Road fund licence options Tyre management options KPI and management reporting Scheduled event management Collection and delivery for scheduled maintenance Relief vehicle options Uptime management Account management To find out more about how Iveco Capital Contract Hire can benefit you and your business, please contact your local dealer or call the Iveco Capital team on

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17 IVECO CAPITAL: YOUR COMPLETE FINANCIAL SOLUTION A FULL RANGE OF FLEXIBLE FINANCIAL PRODUCTS AND SERVICES Iveco Capital offers a complete range of flexible financial products and services designed to provide the best solutions for all your transport needs.

18 Iveco Capital Limited Iveco House Station Road Watford Hertfordshire WD17 1SR Telephone: Fax: For more information about the solutions and services we offer, please contact your local Iveco dealer or call the Iveco Capital team direct on This publication is not intended to, and does not create any legal rights and obligations. Iveco Capital reserves the right to change product specifications or update the information in this publication without prior notice. For the most recent information, contact your local Iveco distributor. Ref no.: ICCB08/08