Hire Purchase

Is hire purchase right for you?

Hire Purchase

Are you looking for a simple finance package which gives you the option to own your new van while making fixed monthly payments in the process? Then hire purchase is most definitely the option you!
Your hire purchase package will involve an upfront deposit followed by fixed monthly payments,unlike other finance packages you have the opportunity to purchase the vehicle at the end of your agreement.
There are no mileage restrictions with a hire purchase agreement, however you are responsible for the vehicle servicing and maintenance.
How it works
The deposit is normally full vat plus 10% of the vehicle value, although you can choose to pay more to reduce your monthly payments.
Fixed monthly payments: terms between 24 & 60 months.
Small option to purchase fee at the end of the agreement to transfer ownership of the vehicle to you, the customer

Benefits

  • VAT deposit is reclaimed for vat registered businesses
  • Ownership of vehicle at the end of the agreement
  • No vat on monthly payments
  • 100% of interest charges can be offset against taxable profits
  • No mileage restrictions
  • Asset on balance sheet
  • Fixed monthly payments are not subject to vat
  • First years RFL (road fund licence) included
Information required to assist the finance application:
  • 3 years address history
  • UK resident
  • Full UK driving licence
  • No current CCJ or mortgage arrears
  • Proof of income
For business use:
  • Director can be guarantor
  • Proof of trading
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