1.Hire Purchase

Available on new and used cars to both businesses and private individuals. Sometimes reffered to as 'Conditional Sale'. This is a simple but flexible option. It is very similar in structure to other traditional lending sources such as banks and other direct lenders. You decide the deposit (normally 5% minimum). You choose the term you wish to repay over, between 1 and 5 years. The finance company will agree a fixed* interest rate for the term. You make fixed repayments each month and own the car when the last payment is made.
You may wish to 'settle' the agreement early at any time, the finance company will provide a settlement figure to you, this figure is regulated by the consumer credit act provided the loan is under £25000.

What's the Tax situation for businesses?

• The interest can be offset against tax
• The vehicle is shown as an asset on your balance sheet
• The vehicle can be 'written down' each year by up to 25% to a maximum of £3000 p.a
• There is no VAT element on the repayments

*It is also possible to arrange variable rate loans that are based on daily rates of interest (often called 'balanced payments' plans). Variable rate interest charges are quoted as a % over base rate.

NB. The APR shown is based on a flat rate of 4.5%, purely for example and not to reflect our current rates please call for a tailored quotation, make sure when comparing loans that flat rates are not confused with APR's.