Finance

Hire purchase

Suppliers, supply the vehicle and you pay a monthly amount for an agreed period and ultimately you own the vehicle. The details of the agreement can be tailored to your needs and budget, based on initial payments and /or final balloon payment.

Key Benefits Hire Purchase:

• Lower initial outlay than outright cash purchase
• The vehicle appears as an asset on your balance sheet
• You can claim capital allowances
• A choice of fixed or variable interest rates Interest on repayments can usually be offset against taxable profits

Disadvantages: monthly repayments are normally higher than with contract purchase and you cannot reclaim VAT on the vehicles purchase price. You are responsible for all the risks of owning , administering, running, maintaining and disposal of the vehicle.