Finance Hire Purchase
Finance Option - Hire Purchase
Hire Purchase is a simple and effective way for private individuals and business to spread the cost of a New or Used car.
You simply pay a small deposit (10% to 20%) to suit your available capital, and then make monthly repayments over an agreed period of time (12/24/36/48/60 Months). Once all the payments have been made along with the option to purchase fee (Approx ?50), then you will acquire title to the car.
If you are a business user, all of the interest on your payments is allowable against tax. Additionally a proportion of the car's value can be written down against your profits.
Benefits of Hire Purchase:
- Ownership of the goods - control of usage and disposal
- Eases cash flow / budgeting & planning - known outlay that will not change
- Leaves other credit lines undisturbed
Benefits for Business Users:
- Interest charges allowable against taxable profits - reduces tax bill
- Tax relief (capital allowances) - reduced tax bill
- Capital released - leaves money available to develop other parts of the business
