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Hire Purchase
Hire Purchase is mostly commonly adopted by individuals or companies when ownership of the vehicle is of value.
Hire purchase is the most traditional method of financing a vehicle with the vehicle becoming the property of the lessee at the end of the hire puchase agreement. It is purely a vehicle finance package and does not include maintenance or other added-value services that you can obtain through other vehicle funding methods such as contract hire or finance lease
A hire purchase agreement requires an initial deposit, then the remaining balance is settled by equal monthly payments over the agreed period. The deposit and repayment periods can be adjusted to suit the budgetary requirements of the customer.
Customers should bear in mind the hire purchase loan itself is secured against the vehicle and will not own the vehicle until the final payment has been made.
The benefits of hire purchase are listed below:
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► Accurate monthly budgeting ► Improved cash flow ► Minimum capital expenditure ► Fixed interest rate
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► Capital allowances available ► Reduced administration ► On going advise and support ► Ownership of vehicle
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