Hire Purchase Information
Hire Purchase or HP
This is the traditional method of finance for vans and cars.
It is easier for us to summarize the key benefits in a point by point form.
The VAT must be paid upfront in most cases, but please ring as we may be able to help.
Benefits
- The vehicle can be depreciated by
40% year one
25% year 2, 3, 4 - If a customer is VAT registered then the VAT is reclaimable in most cases
- There is a little less paerwork at the end of a HP deal.
Considerations
- If you are VAT registered we can delay your VAT payment by up to three months allowing you time to claim it back before paying it.
- We will happily look at HP with balloons thus the payments on our leasing deals are very similar for most products with the exception of Volkswagen.
- It is usually easier to get credit on HP than lease or contract hire. The simple reason being that the deposit is larger. This would not be the case if the VAT was deferred.
