Hire purchase offers a straightforward way to spread the cost of your new car. With this method of finance you have a fixed rate of interest with fixed monthly payments, making budgeting simple and easy.
You choose the amount of deposit you wish to pay, typically between 10-50% of the car's cost. The remainder of the balance, together with fixed interest, is repaid over an agreed period of your choosing (12-60 months).
The benefits of Hire Purchase
- Low deposit - keeps valuable personal or business cash available
- Control - you decide the deposit, you decide the term
- Fixed monthly payment - makes budgeting simple
- Flexibility - doesn't compromise your other lines of credit
- Assets - you gain ownership of the car
- Tax benefits - Tax allowances for business users
- VAT free - no VAT on payments
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