Hire Purchase
What is a Hire Purchase and how does it work ?
Hire Purchase has been around for a long long time and is the oldest method of funding vehicles. If you want to own the vehicle at the end of the agreement then this is the method for you. You pay a fixed deposit on a car or 100% of the VAT on a commercial vehicle as deposit as you cannot finance VAT.
Key Benefits:
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Low Deposit
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Additional credit line
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Repayments do not attract VAT
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Shown as an asset
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Fixed interest rate
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Fixed monthly payment
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Vehicle ownership at end of contract
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Writing down tax allowance
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Consumer credit act protection
As you will see the monthly payments on HP are a lot higher than on a lease agreement as you pay the full cost of the vehicle plus interest over the term of the contract.
