Hire Purchase
What is Hire Purchase?
A Hire
Purchase Agreement is a way of borrowing money from a Finance Company
for the purchase of a Car, Motorcycle etc.
If you were to borrow money to purchase a car you would make regular
payments over a period normally between 18-60 months depending on the
age of the vehicle.
On the final payment, ownership is passed to the customer.
Although the Finance Company owns the vehicle throughout the agreement,
it is the responsibility of the customers to maintain and repair the
vehicle at their own expense. The customer is also responsible for any
loss or damage to the vehicle and therefore must be insured fully comprehensively
throughout.
Hire Purchase is a popular choice for private & commercial customers and is a very beneficial way of spreading the cost in budgeted monthly payments over a period of time.
Continued ...
Benefits
-
Ownership at the end of the agreement.
-
Frees capital for other purchases or alternative investment.
-
No need to increase bank borrowings.
-
Accurate cash flow forecast.
-
For business users, any capital allowance available may be claimed.
-
For business users, interest can usually be offset against taxable profits.
-
Simple documentation resulting in faster decisions.
PLEASE NOTE THAT THE GOODS ARE AT RISK IF YOU DO NOT KEEP UP YOUR REPAYMENTS