One of the most complex subjects in business motoring, whether for an individual or for a company with a fleet of cars, is how the financing of the cars should be arranged. In recent years many different financial plans have been created; by the major leasing companies and also by the manufacturers themselves.

There are hire and leasing specialists in most dealerships, able to give quick and detailed quotes, and advice about other services, thanks to computer links with the appropriate divisions of the manufacturers or importers they represent. Ford Credit, Jaguar Contract Motoring, the recently merged BMW and Rover Financial

Services, Saab Finance and Mercedes Finance are just a few of

the car companies' operations in this field.

As well as explaining what financial products they can offer, and the benefits to the customer in choosing one or another, the companies are also able to look after a business customer's fleet policy - purchasing, maintenance, control and administration.

Of course, none of this comes free, but many businesses are happy to offload the work to an outside specialist.

When it comes to financing a car, there are two basic choices. Do you want to own the vehicle at the end of the contract period, or do you want to come to the end of the period (usually two or three years), hand back the car and think about taking on another one via the same kind of plan?

In fact, there is a third option, because some plans let you wait until the end of the period before deciding whether or not you want to keep the car as your own property, with an appropriate payment, if that is your preference.

Many people in the hire and leasing business suggest that, before going into a dealership to decide on your method of finance, it is a good idea to consult your own accountant, who will probably be able to suggest the best option to suit your own circums tances, and may also be able to hack more energetically through the jargon involved.

Although some companies use different terms, if you want to own the car at the end of the period the two main methods are hire purchase and lease purchase. Contract purchase lets you delay the decision about keeping the car or returning it.

With hire purchase or lease purchase you have the choice of fixed or variable interest rates, the vehicle is an asset on your balance sheet, the interest payments are allowed against taxable profits, and you can claim write-down allowances. It is always important to check the small print of the VAT situation, for example in the case of private mileage on a business car.

Taking on a hire purchase agreement means putting down a deposit and then making regular, usually monthly, payments. Lease purchase starts in just the same way, but before signing up you decide on a final lump sum

payment - in financial jargon,

a ''balloon''.

In that way, although your final payment is higher, your monthly payments are smaller than they would be if you went for hire purchase. Of course, the calculations involved in lease purchase depend on the anticipated residual value of your car at the end of the agreement. In fact, likely residual value is the crucial factor in most hire and leasing deals, and it is worth bearing in mind that some cars depreciate in value at a much higher rate than others.

With so many plans and so many different makes and models of car available through them, it is impossible to go into great detail. But here, on the assumption that you want to return the car at

the end of the period, are some indications on a variety of models - the Ford Mondeo Ghia as an example of a top of the range mainstream saloon, a BMW 5-series Touring as an executive estate, a Lexus GS 300, and a Jaguar XK8 coupe as a car providing GT performance and style.

They are based on a typical three-year contract, of the kind which most West of Scotland business people favour, allowing 20,000 miles usage per year. Of course, if you exceed the mileage allowance there is an excess charge to be taken into account, between six and nine pence per extra mile in the case of the Ford.

For contract hire of a two-litre Mondeo Ghia with air conditioning, assuming three payments in advance then 35 monthly payments, one local Ford dealership quotes a monthly rental of #274.02 plus VAT. That is without maintenance. With maintenance the figu re rises to #317.71.

In the case of a BMW 520 SE Touring, the same arrangement

of a three months' deposit followed by 35 monthly payments, this time including a maintenance package, would work out at #559 plus VAT.

For a GS 300 with no maintenance option, which Lexus

dealers often suggest is unnecessary, the cost per month, on the same three-plus-35 basis, is #567 plus VAT.

Although the supercharged XKR is Jaguar's latest high

performance car, the supply situation is easier for the non-supercharged XK8, which shares the same glorious styling, is fast enough for most people to be going on with, and is substantially less expensive.

For an XK8 coupe in Classic rather than Sport specification, with leather upholstery, and including a full maintenance package, the three-year 60,000 mile contract should come in at #1039 plus VAT per month.

In other plans the Mondeo, for instance, could be bought under a contract purchase arrangement for a monthly rental of #334.02 with a final payment of #6056.25.

A lease purchase agreement on the BMW might involve a #5500 deposit, 35 monthly payments of #560 and a final payment of #8415, which could be swopped across to a replacement car. Lease purchase of the Jaguar might involve a 10% deposit, 36 monthly paymen ts of #947.37, and a ''balloon'' of #24,025.