Hire Purchase
If ownership is a priority then this is a cost-effective route to purchasing your vehicle. See below for some of the benefits HP can offer:
- Flexible Repayment period - up to 60 months
- Fixed Monthly Repayment aids budgetary control and cashflow
- Monthly repayments are VAT free
- VAT deposit reclaimable (VAT registered customers)
- 100% of interest charges can be offset against taxable profits
- Vehicle is an asset on your balance sheet and benefits from writing down allowances
Year 1 - 50% Year 2 - 25% Year 3 - 25% etc...etc... - Ownership of vehicle will pass when the agreement is completed
- Ideal for those who require ownership of the vehicle
HP Plus
HP Plus is our version of Contract Purchase which gives you all of the benefits of Hire Purchase with all of the benefits of Contract Hire (i.e. no risk). It does sound too good to be true but there really are no catches - you own the vehicle and we give you a guaranteed future value so at the end of term you can either hand the vehicle back and owe nothing or pay the balloon and keep it.
- Deposits are typically 3 payments + all VAT (just like Hire Purchase)
- Flexible Repayment period - up to 60 months
- Fixed Monthly Repayment aids budgetary control and cashflow
- Guaranteed Future Value of the vehicle (no risk of depreciation)
- Monthly repayments are VAT free
- VAT deposit reclaimable (VAT registered customers)
- 100% of interest charges can be offset against taxable profits
- Vehicle is an asset on your balance sheet and benefits from writing down allowances
Year 1 - 50% Year 2 - 25% Year 3 - 25% etc...etc... - Ownership of vehicle will pass when the agreement is completed
- Ideal for those who require ownership of the vehicle
- Maintenance available if required
- Road Fund License (Road Tax) included for the whole term
Finance Lease
This facility provides the customer with the benefits of ownership with minimum deposit and maximum flexibility
- Deposits are usually the equivalent of three rentals. but can be any amount whatsoever
- Repayment period of up to 60 months
- VAT is paid monthly, then claimed back quarterly (if VAT registered)
- Rentals are 100% allowable against taxable profits
- Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
- Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
- Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility
- No mileage clauses
Contract Hire
A comprehensive and fixed cost solution where use of your commercial vehicle is important, but without the responsibilities of ownership. Essentially an operating lease with a full maintenance package. Mileage sensitive - be careful!
- Deposits are anything from 3 rentals upwards
- Total budgetary control - fixed costs, as long as you stay within the mileage
- Monthly repayments are subject to VAT - VAT recoverable
- Rentals are 100% allowable against taxable profits
- Fixed maintenance package to include services, repairs, tyres, dependant on contract type
- At the end of the contract, simply hand the vehicle back
- The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer - Ideal for VAT registered larger fleet operators.
If you have any questions relating to these finance methods, please call us on 01724 747450 and we'll discuss the pro's and cons of all types of Finance, to make sure you make the right choice.