Hire and Lease Purchase
Hire & Lease Purchase are finance products where you will own the vehicle at the end of the agreement.
What is Hire & Lease Purchase.
Probably the most straight forward type of finance, you are simply borrowing an amount of money to purchase the vehicle over an agreed period.
The only difference between Hire and Lease purchase is Lease Purchase has a final payment, Hire Purchase does not.
Lease Purchase gives you lower monthly rentals but you will pay more overall due to higher interest costs.
How does it work?
- You pay a fixed monthly payment for the agreed term of the contract, typically between 24 - 60 months.
- Once all payments are made you own the vehicle and can do as you wish with it.
- You pay the VAT of the vehicle up front and claim back, meaning no VAT is paid on the monthly rentals.
- The mileage you do does not impact the payments, if you choose Lease Purchase it would be used to set a accurate final payment.
Key benefits.
- Cleanest way to own a vehicle at the end.
- No charges for excess mileage or damage.
- Fixed monthly cost.
- Easy to get out of the contract early.
Points to consider.
- Monthly payments can be higher than other products.
- You need to have the funds available to pay the VAT up front.
- You don't own the vehicle until you have settled the agreement.
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