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VAN HIRE PURCHASE

 

Hire purchase requires you to put down an initial deposit, this is usually the full VAT followed by fixed monthly repayments. These repayments typically range between 24 and 60 months. At the end of the contract or sooner, having paid all the payments outstanding plus any option to purchase fee, you will own the vehicle.

ADVANTAGES

 

  You own it at the end of the contract

  Purchase cost and interest elements of the agreement may be

   Corporation Tax deductible

  Fixed interest rates

  Early settlement of the agreement is possible

  Monthly payments are not subject to VAT

  No damage or excess mileage recharges at end of agreement.

DISADVANTAGES

 

  You are liable for the full value of the vehicle

  There is no “hand back” option at the end of the contract

  For LCV (Light Commercial Vehicle) buyers the full amount of the

   VAT must be paid up front.

  Monthly payments tend to be higher as there is no final balloon payment.

Image of the inside of a van - vanfinderuk.com
Image of the inside of a van - vanfinderuk.com

FINANCE OPTIONS

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VAN LEASE PURCHASE

 

Lease purchase requires you to put down an initial deposit, this is usually the full VAT followed by fixed monthly repayments with the option of a final payment (balloon).

These repayments typically range between 24 and 60 months. At the end of the contract, or sooner, having paid all of the payments, including the optional final payment (balloon) along with any option to purchase fee, you will own the vehicle.

ADVANTAGES

 

  Vehicle ownership at the end of the contract

  You can lower the monthly payment by adding an optional final

   payment (Balloon)

  Fixed interest rates

  Early settlement of the agreement is possible

  Monthly payments are not subject to VAT

  No damage or excess mileage recharges at end of agreement.

DISADVANTAGES

 

  You are liable for the full value of the vehicle

  There is no “hand back” option at the end of the contract

  The final payment (Balloon) can be large and would therefore need to be
   budgeted for. For LCV (Light Commercial Vehicle) buyers the full amount

   of the VAT must be paid up