Hire Purchase
- Multiple end of contract options
- Equity accumulation without ownership
- No contractual tie to excess mileage or damage charges
What is Hire Purchase?
Hire Purchase is a financing method where your business can acquire a van through a series of fixed monthly payments. Unlike leasing, each payment contributes towards the purchase of the vehicle, leading to ownership at the end of the contract. This option is ideal for businesses planning long-term vehicle use without the constraints of leasing agreements.
Key Benefits
- Fixed Monthly Payments: Manage your finances with ease through consistent monthly payments.
- Ownership at Term End: Gain full vehicle ownership after the final payment.
- Flexibility in Payments: Options to adjust the deposit and payment structure to suit your budget.
How Does It Work?
- Choose Your Vehicle: Pick the perfect van that aligns with your business’s operational needs.
- Agree on Terms: Set your deposit amount, contract duration, and monthly payment plan.
- Monthly Installments: Pay fixed monthly installments throughout the term.
- Gain Ownership: Complete all payments and the vehicle is yours, free from any further obligations.
Is Hire Purchase Right for Your Business?
Hire Purchase is particularly suitable for businesses looking for a straightforward route to vehicle ownership with the advantage of spreading the cost over time. It’s a great fit for companies that prefer to own their vehicles outright and avoid mileage restrictions or customization limitations often associated with leasing.
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How we can help
We’re committed to providing straightforward and effective vehicle financing solutions. Our experienced consultants help you navigate through our flexible Finance Lease and Business Contract Hire options, ensuring you find the perfect fit for your business’s needs and budget.
Hire Purchase FAQs
In a Hire Purchase agreement, the deposit is the initial amount paid towards the van’s purchase price. Typically, it’s a percentage of the total cost. The higher the deposit, the lower your monthly installments will be.
Yes, you can settle your Hire Purchase agreement early. You’ll need to pay off the remaining balance and any additional fees as per your contract. Settling early can save you interest but check your agreement for any early settlement fees.
No, there are no mileage restrictions in Hire Purchase agreements. Unlike leasing, where mileage limits are common, HP allows you to drive the van without worrying about exceeding a set mileage.
Typically, maintenance and servicing costs are not included in Hire Purchase agreements. HP deals primarily with the financing of the van itself. You’ll need to arrange and cover the cost of maintenance and servicing separately.
At the end of a Hire Purchase term, once all payments are made, you become the outright owner of the van. There are no balloon payments or additional fees to pay at the end of the agreement, provided all terms have been met.