hire purchase is the most common way to purchase a vehicle in the private sector.

after paying an initial deposit, usually a minimum of 10%, you then pay equal monthly payments over anything from a 1 to 5 year period.

the interest rate is fixed at the beginning of the agreement.

this gives you the protection against increasing rates over the period. after the last monthly payment has been paid you become the official owner.

the vehicle is funded as an asset to the company.

being an asset the vehicle can be written down on your balance sheet.

there is no vat on the monthly payments.

with the initial capital outlay reduced it will enable your company funds to be distributed in a more beneficial way