Our Hire Purchase package is all about simplicity. If you prefer to own the van at end of your agreement, then Hire Purchase is most definitely the best option for you.
After paying a deposit, you simply hire the vehicle until your final monthly payment – which point you acquire ownership of the van.
There are no mileage or damage restrictions with a Hire Purchase agreement; however you are responsible for the vehicle’s servicing and maintenance.
The Hire purchase package is split as follows:
Deposit: Usually the full VAT (20%) of the vehicle’s value, although you can choose to pay more to reduce your monthly payments.
Fixed monthly payments: Choose your repayment term, from 2 to 5 years.
Capital cost of van can be written-down utilising the standard writing-down allowances, unless using the Annual Investment Allowance (AIA). Finance subject to company status.
Choose to repay over 2 to 5 years
First years's RFL (Road Fund Licence) included
Deposit (usually VAT at 20%) can be offset against your next VAT return
Vehicle appears as an asset on your balance sheet
You own the vehicle at the end of your agreement
Interest can be claimed against your tax bill
Fixed monthly payments are not subject to VAT
To assist your application, finance companies will look for a number of the following criterias:
3 year address history
One credit item in past 3 years
Full UK driving licence
Proof of income
For business use:
Proof of positive trading
Director can sign as guarantor
All payments advertised are subject to VAT. Deposit can mean initial payment or initial rental depending on the contract type. Customers are subject to credit searching by the finance company on application.