Hire Purchase Information
Most of our vehicles are available to HP as well as lease on request. HP and Lease are actually very very similar and monthly figures can often be very similar.
From April 2012 companies are allowed just £25,000 of capital tax allowance so HP and cash will not be as cost effective from this date.
VAT
Vat has to be paid upfront when you utilize this funding method. Thus this method is more popular with VAT registered customers, since they can claim this back within days or weeks. Thus the minimum deposit by definition of VAT is 20 %. All monthly figures include VAT on HP or Hire Purchase.
Balloons
Of our thirty plus funders only two allow balloons thus, generally the monthly figure is higher but the debt repaid more quickly. We have more lenders who offer lease than HP.
HP VS "No Balloon or Terminal Lease"
They are actually very similar, in terms of monthly payment. The main differences being how the inital deposit is treated, what happens at the end.
End of the Agreement.
The van is automatically yours.
Taxation
100% of the vehicle price can be set against your profits in the first year. These days there is virtually no taxation difference between lease and HP.
This will drop form April 2012 due to changes in Capital Tax Allowance
