The Hire Purchase (HP) finance option enables you to buy the cheap new van you want by spreading the cost over monthly instalments. At the end of the agreement, you will own the vehicle outright. Choosing vans on HP allows you to decide how much you want to pay as a deposit (minimum deposit equal to VAT and the road fund licence) and then complete your purchase with fixed, affordable monthly payments.
Benefits of buying vans on hire purchase include:
Cash flow – Hire Purchase enables you to pay fixed monthly instalments, making it easier to manage your cash flow.
Repayment period flexibility – You choose the repayment term that's right for you – up to 60 months.
Fixed monthly repayments – The payment will be the same every month, helping you to plan your finances.
Deposit – Choose the size of your deposit. The minimum is simply the cost of your VAT and road fund licence.
VAT free monthly repayment – Paying the VAT upfront means there's no VAT on your monthly payments.
Tax advantages – If you are VAT registered, you can reclaim the deposit.
Tax relief – You can claim 100% tax relief on all interest charges.
Company asset – Your new van is an asset, so it can be offset against your taxable profits.
Ownership – At the end of your agreement, you'll own the van.
No mileage restrictions – Drive your van as much or as little as you want, with no additional fees for excess mileage at the end of the contract.
Equity – You own the equity in your van. Any value above and beyond the settlement figure is yours. If you've finished the repayments, the value is yours and you can use this as a deposit against your next new van.