Hire purchase

CAR FINANCE

Hire purchase
This is the traditional method of car finance.
Main features include:
  1. Ownership of the vehicle at the end of the agreement.
  2. A repayment period of up to five years.
  3. New, classic and used cars up to seven years old can be financed.
  4. No VAT payable on instalments.
  5. The amount borrowed is paid over the term of the agreement with no balloon
    at the end.
Contract hire
Contract hire
The main features of this option are:
  1. A small initial payment.
  2. A reduced monthly payment (as car is handed back at the end of the agreement).
  3. All running costs can be included in the monthly rental.
  4. VAT is payable on the monthly rentals.
  5. The fixed monthly cost makes budgeting easier.
Personal contract purchase
Personal contract purchase
This is similar to Lease Purchase. The main charactersitics of this funding option are as follows, with the ability to pick and choose from the different features:
  1. A small initial payment.
  2. The option to own the vehicle at the end of the agreement.
  3. Repayments can be tailored to minimise outgoings.
  4. A restriction to new or nearly new cars.
  5. No VAT is payable on the rentals.
  6. Option to include maintenance.
  7. The balloon payment can be refinanced.
Car finance
View