We offer a wide range of finance products which can usually be tailored to each of our customers individual requirements. For details on how these products work or which product may be most suited to your needs, we have provided these useful explanation videos to assist with you in making an informed decision.
For a quotation or should the product you are looking for not be available below please get in touch with one of our experienced team who will be happy to assist you.
What Is Hire Purchase?
Hire purchase is a type of asset finance where the purchaser will pay regular instalments throughout the agreed time. After all the payments have been made, the purchaser legally owns the asset. Hire purchase for assets is like when an individual might buy a car, normally this involves paying a deposit and all the VAT upfront.
The benefits of hire purchase include:
- Fixed Budgeting
- Fixed Monthly Payment
- No mileage restrictions
- Full ownership at the end of the agreement
Not sure if hire purchase is right for you? Get in touch with one of our team to find out more.
What Is Lease Purchase?
An asset lease purchase, or finance lease, is when a customer rents an asset during the majority of that items useful life. The customer renting the asset will never own it but takes on most responsibilities, such as maintenance. Lease purchases consist of regular monthly payments, which add up to the full cost of the asset plus interest. At the end of the agreement, the customer has three options:
Continue to use the asset in a secondary lease period (often with cheaper payments).
Sell the asset and keep a share of income.
Return the asset.
The finance option feels like a hire purchase; however, they are different on the balance sheet. Deciding between them is usually down to financing as with lease purchase you can spread the VAT cost over several payments.
The benefits of lease purchase include:
- Lower payments through the option of a balloon (deferred final payment)
- Option to purchase the vehicle at the end of the agreement
- Flexible arrangement - term can be amended or agreement ended at any time.
- Any equity in the vehicle can be used as a contribution towards a new vehicle.
Interested in knowing more about lease purchase? Message us today.
What Is Personal Contract Purchase (PCP)?
Personal contract purchase is used by a private individual when they are looking to buy a new vehicle. A PCP financial deal guarantees a future price on the asset-based on estimates from CAP.
The benefits of personal contract purchase include:
- Fixed monthly payments
- Low deposit
- Fixed interest rates
- Option to purchase at the end of the agreement
- Option to hand the vehicle back at the end of the agreement with no additional charges* (subject to vehicle condition & mileage)
- Available on new & used vehicles. (used must not exceed 60 months at the end of the term)
Get in touch with us today to find out more about personal contract purchase
Contact our team today to discuss your next purchase.