Hire Purchase is designed for those who want to own their brand new van. Our Hire Purchase packages are very simple; you hire the van right up until your final monthly payment, at which point you acquire ownership of the van.
There are no mileage or damage restrictions with a Hire Purchase agreement, but you are responsible for the servicing and maintenance of your brand new van.
Hire Purchase packages are structured as follows:
Deposit – The VAT is usually paid as a deposit, which is 20% of the vehicle’s value. However, you can choose to pay more in order to reduce your monthly payments.
Fixed Monthly Payments – Choose your repayment term from 2 to 5 years.
Other Details – Capital cost of van can be written-down using the standard allowances, unless using the Annual Investment Allowance (AIA). Finance is subject to company status.
- Choose to repay over 2 to 5 years
- First year’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
- Current UK resident
- 3 years UK address history
- One completed credit item in past 3 years
- Proof of income
- No current CCJ’s or mortgage arrears
- Full UK driving licence
- Proof of positive trading
- Director can sign as guarantor
All advertised prices are subject to VAT. Deposit can mean initial payment or initial rental depending on the contract type.
A credit search is required on application.