4x4 on Hire Purchase
One of the most common forms of financing a vehicle is through a process known as 'Hire Purchase' which offers a straightforward way to spread the cost of your new vehicle. There is a fixed rate of interest with fixed monthly payments, which allows you to take ownership of your car once all payments are made, making budgeting simple and easy.
Hire Purchase combines elements of both a loan and lease, once you have reached an agreement with us to pay an initial deposit, typically between 5-50% of the vehicle price. The remainder of the balance, together with the interest, is repaid monthly over an agreed period usually between 1-5 Years. At the end of the period the car is yours.
Unlike a lease or personal contract purchase agreement, the residual value of the vehicle is not taken into account. Instead your monthly payments on a hire purchase agreement are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.
Advantages of Hire Purchase
- Low Deposit – Doesn't tie up personal or business assets
- Control – You decide the deposit, you decide the term
- Fixed Monthly Payment – Makes budgeting simple
- Flexibility – Settle your loan early
- Assets – You gain ownership of car
- Tax Benefits – Tax allowances for business users
- VAT Free – No VAT on payments