Mercedes-Benz Commercial Finance
Mercedes-Benz CharterWay, is the international commercial vehicle financial services, contract hire and fleet management arm of Daimler AG. Hughes Mercedes-Benz provide specialist financial and operational expertise to HGV and LCV operators of any size and in any sector.
Mercedes-Benz CharterWay Hire Purchase
Hire Purchase is an ideal choice for those looking for vehicle ownership, allowing you to spread the payments for a vehicle - and once all of the payments have been made the vehicle is yours.
A Hire Purchase with a balloon payment is simply a Hire Purchase agreement that features a "balloon" which defers payment of some of the capital until the end of the agreement. The vehicle is yours when all of the payments, including the "balloon", have been made.
All you have to decide is whether you want lower monthly rates with a balloon payment at the end or simple fixed payments over an agreed term.
There are just a few other straightforward options to consider too;
• You agree an appropriate deposit plus VAT (which is reclaimable).
• You make monthly or quarterly repayments that include interest for the agreed period.
• You can choose from fixed or variable interest rates.
• You can even choose to pay in advance or in arrears.
Mercedes-Benz CharterWay Agility
Mercedes Agility is a method of acquisition similar to Hire Purchase, but in this case where monthly rentals can be kept low by agreeing a lump sum at the end of the term, referred to as the Guaranteed Future Value.
• You agree an appropriate deposit
• You make monthly or quarterly payments throughout the agreement term
• The monthly rentals are kept low by agreeing a lump sum at the end of the term. This amount is called the Guaranteed Future Value (GFV) and is based on the mileage you expect to do over the period
• At the end of the agreement you have four options:
i) Pay off the final lump sum and keep your vehicle
ii) Extend the agreement by spreading the balloon payment over a further agreed period
iii) Return your vehicle, freeing you from any further obligations apart from an excess mileage charge if the estimated mileage has been exceeded, and damage charges over and above fair wear and tear
iv) It may be possible to trade in your vehicle
Mercedes-Benz CharterWay Contact Hire
Contract Hire can ease the headaches out of running a commercial fleet. Instead of owning the vehicles, you hire them for a fixed period - typically 3 to 5 years - for a fixed monthly fee. This is based on the difference between the initial value of the van and projected residual value at the end of the agreement, plus finance charges. This means you repay only a proportion of the vehicle's costs, which is good news for your cashflow.
Mercedes-Benz CharterWay Finance Lease
With a Finance Lease agreement, a vehicle is hired to you for a fixed period without the option of ownership. At the end of the contract, the proceeds from the sale of the vehicle, less a small fee, are returned to you. The basic details are;
• You agree an initial rental
• You pay monthly or quarterly for the use of a Mercedes vehicle over an agreed period
• At the end of the agreement the vehicle must be sold on to an independent third party. We will invoice the third party on your instruction and then return 95% of the sale price to you
• Alternatively you may return the vehicle to us. We will then sell it and return 95% of the net sale proceeds to you, after deductions and collection fees
• You can choose to pay a final lump sum to reduce the regular rentals
Mercedes-Benz CharterWay Operating Lease
An Operating Lease is perhaps the most simple way to obtain a vehicle, where the vehicle is hired to you for a fixed period.
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 charged. Therefore only a proportion of the vehicle's value is being repaid which avoids any large initial outlay and reduces the monthly rental.
At the end of the lease period the vehicle is simply returned, freeing you from any further obligations apart from any excess mileage or damage charges, if applicable.
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You agree an initial rental.
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You agree the mileage you wish to cover over the period of the agreement. This helps us determine the expected ‘Residual Value’ of the vehicle at the end of the agreement.
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You simply pay monthly or quarterly rentals throughout the agreement. At the end of the agreement you just give the vehicle back.
