What is van hire purchase?
Hire purchase (HP) is the traditional way of funding a new van. You pay a deposit and then pay the remainder of the balance monthly over an agreed period (up to 60 months). After the contract is finished, the van is owned by you.
Benefits of hire purchase:
• VAT deposit is reclaimable for VAT registered businesses
• At the end of the contract the vehicle is yours
• No VAT on fixed monthly payments
• 100% of interest charges can be offset against taxable profits
• No mileage restrictions
• The van is an asset on your balance sheet
• Taxation benefit from depreciating the asset
• Interest is reclaimable against your tax bill
Whether you want to keep monthly costs low or adjust the deposit amount, our team of experts can tailor a finance package to suit you and your business.
For more information on our flexible hire purchase deals contact us now on 0845 021 1111.
Choose your repayment term, from 2 to 5 years
RFL (Road Fund Licence) included for first year of term
Offset your deposit (usually VAT at 20%) against your upcoming VAT return
Your new van is regarded as a balance sheet asset
At the end of your term, you own the vehicle
Claim interest against your annual tax bill
Monthly payments are fixed and VAT-exempt
Meeting the following criteria will assist your application:
Full address history (3 years to date)
A successfully completed credit item in past 3 years
Resident of United Kingdom
Full UK driving licence
Proof of income
For business use:
Proof of positive trading
A Director who can sign as guarantor
All advertised payments do not include VAT. Depending on the type of contract, deposit can mean either initial payment or initial rental. Finance approval is subject to a successful credit check by the chosen finance company on application.