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HIRE/LEASE PURCHASE
Introduction
Hire purchase is simply a loan agreement to hire
with the option to purchase. You enjoy all the benefits
of using the car, whilst the finance company retains
an interest in the vehicle until the last payment
is made.
How it works
A deposit is paid on delivery of the vehicle, leaving
the balance plus interest paid over an agreed period
by monthly instalments. Full title passes to you
upon final payment.
Benefits
• Fixed term means easy budgeting
• Low initial capital outlay
• Releases cash flow for other uses
• Repayments tailored to suit budget
• Full title at end of the agreement
Business Tax
“Written Down Allowance” is treated
as a cash purchase. In addition, the full interest
charges can also be offset on an annual basis.
VAT Implications
There are no VAT benefits, unless the vehicle is
a commercial whereby 100% of the VAT is reclaimable.
This information is correct
at time of publication December 2006.
Platinum is a part
of Renrod Ltd.
Renrod Ltd is authorised and regulated by the Financial
Services Authority. Please ask for full terms and
conditions.
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