Hire purchase is a form of finance which allows you to purchase a vehicle or asset over a fixed period by way of regular monthly instalments. The monthly payments are made up of the cost of the vehicle or asset together with our interest charges.

A typical hire purchase agreement will last from two to five years and after all the payments have been made including the Title Transfer Fee, you become the owner of the vehicle or asset. For business users, you are treated as the owner of the vehicle or asset from the start of the agreement and are therefore able to claim capital allowances on it. You are responsible for maintenance and insurance of the vehicle or asset.

Benefits

• Ideal if you who want to retain the vehicle or the asset at the end of the agreement
• Fixed monthly payments
• Matches payments to the life of the vehicle or asset, thereby easing cash flow
• For business users, payments are an allowable expense against your assessment of Corporation Tax.