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Hire Purchase

A flexible finance option for ownership, available to private individuals and businesses.

Hire Purchase is a funding agreement where the customer acquires ownership when all payments, including the purchase payment have been made.

Part of the capital cost of the vehicle payment may be deferred into a Balloon Payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed contract period.

The benefits of Hire Purchase:

• Fixed monthly cost
• Ownership at the end of the agreement
• Flexible contract
• Balloon Payment
• Low initial outlay
• Business capital not tied up in a depreciating asset
• Finance not subject to VAT
• Interest reclaimable against tax
• Writing down allowance
• Road fund licence included for the first year of the contract

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