Finance Packages
We offer highly competitive finance deals from high street lenders, to help make the right vehicle affordable to you.
The most popular packages are Hire Purchase, Lease Purchase and Finance Lease. They all have different advantages, so please read more and decide which fits your business and circumstances best or contact us to discuss the options.
Hire Purchase
Hire Purchase (HP) is the traditional way to finance a car purchase. You pay off the entire price of the vehicle through a series of monthly payments. At the end of the contract period the vehicle becomes your property.
The monthly payment is determined by the amount of deposit paid, the period of the contract and the sale price of the vehicle. HP is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire purchase is a type of secured loan which are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term “secured loan” means exactly that, a loan that the lender can secure against an asset (in this case, a car).
- Choose what deposit you want to pay
- You may use your part exchange as deposit
- Choose any loan term between 12 and 60 months
- Your repayments are fixed and remain the same for the entire loan term
- You own the car once all the repayments have been made
- Leaves other credit lines undisturbed as the loan is secured on the car
You can change your car at any point by contacting your loan provider who will issue you with the outstanding balance.
Lease Purchase
This type of agreement is a pure funding method of spreading the vehicle purchase value over an extended term. Initial payment requirements are usually lower than hire purchase and a proportion of the depreciation can be deferred by including a final balloon payment.
- Fixed monthly payments for the duration of the contract help planning ahead
- Initial payment requirements are generally low
- You can purchase the vehicle at the end of the contract
- A residual value can be included in the lease thereby reducing the monthly payments
Finance Lease Scheme
A contract based upon a pre-agreed period to simply finance the acquisition of a vehicle. The capital cost is spread over the term and typically incorporates a final payment based upon the predicted resale value determined by the anticipated annual mileage. VAT on the original purchase price is reclaimed by the Funder, which allows the monthly costs to be reduced to reflect the VAT saving. Finance Leases can be terminated early and allow greater flexibility although depreciation risk remains with you. The vehicle is sold to a third party at contract termination and provides the opportunity for you to benefit from any available equity.
The leasing company is able to reclaim all the VAT on the purchase price of the vehicles, which is reflected in much lower monthly payments to the customer
- Fixed monthly payments for the duration of the contract help planning ahead
- Initial payment requirements are generally low
- The rentals are tax deductible
- A residual value can be included in the lease thereby reducing the monthly payments and helping cash-flow
If you are not sure which type of finance would suit you best, we’ll be happy to work it out with you. Please give us a call on 01291 635508.
Typical Apr 9.8 % – All finance products are subject to status , personal gurantees may be required.