If you are looking to buy a car or commercial vehicle outright then hire purchase could be the answer for you. This form of finance is often popular for companies or individuals who do not change their vehicles too frequently. Once the full set of finance payments has been made the asset is owned outright.

It is a structured straightforward repayment facility. The customer puts down a pre-agreed deposit and the balance is spread over the agreed period of the loan.

Key features and benefits

• If you are a business then the asset appears on your balance sheet.
• With ownership you have total control over the asset.
• If you are a business ownership normally carries the potential for claiming writing down allowances.
• For businesses, VAT on the cost of the asset is normally reclaimable*.
• Fixed interest rate.
• For businesses then interest element of repayments can normally be offset against taxable profit.