1. Hire Purchase
2. Hire Purchase with Balloon Payment
3. Contract Purchase (PCP)

Hire Purchase

Pay a deposit. (The actual amount is negotiable). All remaining costs, including interest, are met by your monthly payments. You can also choose from fixed or variable interest rates.

Benefits to you:

• ownership of vehicle
• flexible deposit
• repayments over a fixed period
• fixed or variable interest rates

Benefits to Businesses:

• payments not subject to VAT
• interest may be allowable against taxable profits
• writing down allowances are claimable
• vehicle appears as an asset on your balance sheet
• an additional line of credit
• repayments in advance or arrears

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Hire Purchase with Balloon Payment

Pay your agreed deposit as per hire purchase. Significantly reduce your monthly repayments by choosing to make a final 'balloon' payment at the end of your contract.

Benefits to you:

• ownership of vehicle
• flexible deposit
• repayments over a fixed period
• fixed or variable interest rates

Benefits to Businesses:

• payments not subject to VAT
• interest may be allowable against taxable profits
• writing down allowances are claimable
• vehicle appears as an asset on your balance sheet
• an additional line of credit
• repayments in advance or arrears

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Contract Purchase (PCP)

Pay a deposit. Make your monthly payments. Pay a final or 'balloon' payment based on your agreed anticipated mileage. That's it. At the end of the contract, you have four options:

Option 1
Make the final 'balloon' payment and keep the vehicle.

Option 2
Extend the agreement by spreading the 'balloon' payment over a further agreed period.

Option 3
It may be possible to trade in the vehicle, releasing any available equity to form a deposit for your replacement vehicle.

Option 4
Return the vehicle without making the 'balloon' payment. This releases you from further obligations, excluding any excess mileage or damage charges incurred.

Benefits to you:

• lower monthly payments
• flexibility - you can keep the vehicle, extend the contract or return the vehicle
• payments not subject to VAT
• available on new cars and used cars up to seven years old at the end of the contract
• regular payments are kept low and the decision whether to keep the vehicle is left until the end of the agreement
• repayments in advance or arrears

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