hire purchase
individuals
After choosing the vehicle you require, you simply pay a deposit to suit your available capital, and your monthly payments are then set over an agreed period (24 to 60 months).At the end of that period the vehicle is yours to keep, sell or part exchange.
All you need to do is decide upon the size of your deposit and the repayment period.
businesses
Hire Purchase is also an attractive option for businesses. Not only does the vehicle appear as an asset in the company accounts, but you can use the capital you would have spent in buying the vehicle outright within your business, thereby benefitting your cash flow. The vehicle's value can also be written down against your profits.In summary, the main advantages of Hire Purchase for businesses are:
- Ultimate ownership
- Low initial outlay
- Flexible payment pattern
- More capital available for your business
- Interest charges allowable against tax
- Fixed interest rate
- Write down allowance
- Fixed budgeting