Hire Purchase
Hire purchase: a hire purchase contract enables the end user to budget for their motor vehicle finance costs over the total time of the hire purchase agreement with a fixed monthly outgoing, and at the end of the hire purchase agreement the vehicle then becomes the property of the hire purchase contract holder. Using hire purchase as a method of car finance is a popular choice for private consumers, as well as for the sole trader or small businessman. Hire purchase is a simple and easy way of spreading the cost of motor vehicle finance in budgeted monthly payments over a fixed period of time.
A hire purchase agreement is made with the hire purchase agreement holder paying an initial deposit followed by the agreed monthly repayments – and these payments will be calculated on the price of the vehicle, less the deposit, and the balance left will then be divided into equal monthly payments taking into account the interest on the money borrowed, over the life of the hire purchase agreement. We are able to tailor a hire purchase agreement specifically to the period that the private individual or company requires – although the industry norm is 36 or 48 months the hire purchase contract can be for any duration up to 60 months. At the end of the hire purchase term the vehicle then becomes the property of the individual or company who paid the instalments. Hire purchase agreements typically include the registration fee (where applicable for a new vehicle) and the first year’s road fund licence, with the road fund licence being the private individual or company’s responsibility thereafter. The maintenance of the vehicle, and the insurance, fuels etc. remains the responsibility of the hire purchase agreement holder.
A hire purchase agreement is a simple way of finding motor vehicle finance for both the private consumer and the business user, particularly if the end user wants to own the vehicle at the end of the contract. In almost every case the vehicles that carleasinguk.com supply are new, or pre-registered, and they are sourced from our UK wide franchised dealer network. They can be delivered directly to the hire purchase agreement holder’s place of work or home address. Additionally, a hire purchase agreement can be the ideal solution for those individuals who receive a monthly car allowance, as all or part of that allowance may be used to provide the funding for the monthly payments on the hire purchase agreement and with any shortfall between the individual’s car allowance and the monthly hire purchase repayments being made up by the user, who will normally be the hire purchase agreement holder.
A hire purchase agreement can be a simple and affordable way for both the small business user and the private individual to drive the car – or perhaps the van - of their choice at an affordable price, and our team of experts here at carleasinguk.com will be happy to discuss your motor vehicle finance options with you, including hire purchase.
