Hire Purchase is a traditional form of finance where the entire value of the vehicle is taken as a loan and repaid, with interest, over the period of the contract. It’s good for businesses that don’t want any restrictions on the mileage driven and that want to own the vehicle at the end of the agreement.
The finance is secured against the value of the vehicle and there are no end of contract damage fees or excess mileage charges to worry about. And, as the business will eventually own the vehicle it can be sold to raise a deposit for a replacement.
Monthly payments under Hire Purchase are higher than with other types of funding, such as Contract Hire, as the entire value of the vehicle is financed.
Things to consider
Complete flexibility in the use of your vehicles
Own the vehicle at the end of the contract period
No damage fees or excess mileage concerns
Set monthly payments
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