Hire purchase still commands a 25% share of the market. This is available to both companies and private individuals who wish to purchase their vehicles outright.
Hire purchase is designed to allow you to spread the cost of your vehicle over a period of time making it easier for you to budget and giving you complete ownership at the end of the term.
Main Benefits of Hire Purchase:
Contract Hire is the leasing of a vehicle for a fixed period of time at a fixed monthly rental. The choices of vehicle and contract terms are flexible to meet your individual needs and requirements.
The low cost attributed to contract hire is because the financial lender is able to reclaim the VAT on the new car and pass the savings onto the hirer in the form of low monthly rentals.
Benefits of Contract Hire:
A finance lease is a VAT-free method of financing a vehicle that is usually accessed by VAT-registered businesses and companies.
It is offered to businesses where a moveable asset (the vehicle) is purchased from a supplier your business can then use this asset while paying an effective rental rather than a repayment.
Benefits of Finance Lease: