HIRE PURCHASE (HP)
Hire purchase is a simple, straightforward way to spread the cost of buying a new car. It's fixed rate finance - with a fixed monthly payment.
The deposit you pay is flexible - typically between 0-50% of the vehicle cost. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months).
WHY CONSIDER HIRE PURCHASE?
- Low deposit - keeps valuable personal or business cash available
- Control - you decide the deposit, you decide the term
Fixed monthly payment - perfect for budgeting
- Flexibility - doesn't compromise your other lines of credit
Assets - you gain vehicle ownership
- Tax benefits - tax allowances for business users
VAT free - no VAT on payments