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Hire Purchase |
Lease Purchase |
Contract Hire/Lease | PCP | Protection
This is an enhanced form
of Hire Purchase. The advantages include a low deposit and reduced monthly
payments. This is possible because a balloon (or increased) payment, which is a
percentage of the anticipated value of the car, is deferred until the end of the
agreement.
The interest rate is usually rate fixed at the start of the agreement and
does not vary irrespective of how interest rates may change over the period.
A Checklist of the
Main Benefits
- Available for both business and private users.
- If you choose an agreement structured with a balloon payment your monthly
payments will be reduced as a large percentage of the balance owed on the
car is deferred until the end of your agreement.
- Your initial capital outlay is reduced.
- The interest may be allowable against tax (business users).
- You could fund your car as an asset on your balance sheet (business users).
- You may be able to claim writing down allowances (business users).
- The finance element of your agreement is not subject to VAT.
| Payment
structure at a glance |
Deposit
|
Agreed
Number of
Monthly Payments
|
Car
Ownership Passes
to Customer if agreed
Final Payment is made
|
| Start of
Agreement |
|
End of
Agreement |
For further details contact your chosen dealer.
|