Hire Purchase Information

Hire Purchase

After choosing the vehicle you want simply pay a deposit to suit your available capital (normally 20%) and your monthly payments are then made over an agreed period.

A fixed cost, fixed period loan to support purchase. The user is effectively the owner but title does not pass until the loan is fully repaid. It is on balance sheet for the user. As they constitute loan repayments. Payments do not carry VAT. The capital cost can be written down for tax purposes on a reducing balance basis with up to £3,000 capital allowances available against taxable profits per annum. Interest (usually without limit) is also allowed against tax.

These allowances may be restricted if there is an element of private use.

Key Benefits
  1. Allows you to own the vehicle.
  2. Fixed payments choice of repayment period.
  3. No final payments.
  4. Low initial outlay.
  5. No mileage restrictions.

For anyone thinking about contract hiring a car, it's very important to understand what contract hire is — and what it is not — and how it works and if you have any questions no matter how small just give us a call.