Hire purchase for limited companies. Business car, van or truck.

What is business vehicle hire purchase?

With Hire Purchase you can put down an initial deposit if you wish and then make monthly payments for a fixed period, typically 2 to 5 years and will depend upon the age of the vehicle at the start of the agreement if it is used. At the end of the agreement you become the legal owner as long as all the payment have been made (including any option to purchase fee). Payment of the option to purchase fee transfers ownership of the vehicle from the lender to you. If you do not wish to keep the vehicle and you have made all the repayments to the end of the contractual term, you can simply hand the vehicle back to the lender at this point with the option not to purchase and own it. Most people opt to pay the small option to purchase fee though as the vehicles value is usually far greater.

The more deposit you put down on a Hire Purchase deal, the lower your monthly payments are and vice-versa. Please see our finance calculator to see how putting a larger or smaller deposit down reduces or increases the monthly payments on your loan. A deposit can be made up of either cash, a part exchange or a combination of both.

With Hire Purchase, it may also be possible to become the owner of the vehicle earlier than the agreed term by requesting a settlement figure and making a lump sum payment for the remainder of the loan.

What are the benefits of business vehicle hire purchase?

Hire Purchase agreements allow you to spread the cost of the vehicle over a number of years rather than having to find all the cash up front. The risk for a lender in offering Hire Purchase is mitigated to some extent by the fact that they can repossess the vehicle if you can no longer make your monthly repayments. Because the loan is secured against the vehicle, limited companies have a better chance of being accepted than an unsecured business loan for example. Finance is subject to status.

Unlike with PCP deals, Hire Purchase does not require a large final payment (or balloon) to be made to become owner of the vehicle and Hire Purchase agreements do not tend to impose annual mileage restrictions in the way that PCP or Leasing deals do.

What else do I need to consider?

Finance is subject to status. Failure to keep up with monthly repayments may lead to the vehicle being repossessed, as it is used by the finance provider to secure the loan. That may affect your credit score and ability to obtain finance in the future. You do not own the vehicle until the final instalment, plus any final title transfer fee or option to purchase fee, has been paid.

We have a simple process to apply for new or used business vehicle finance. Using our online application form you can make an initial application and one of our friendly team will call you back to chat through what you're looking for. We'll then put a business vehicle finance application together for you and a short writeup detailing the requirement the business has for an additional or replacement vehicle. Then, once approved in principle, you can start your search confident in the knowledge you have an approval ready and waiting for when you find the perfect vehicle (finance is subject to status).

We have a panel of lenders, some of which will consider new start companies as well as those more well established and trading for a number of years already. We'll match your application to the most appropriate lender from within our panel to obtain the most competitive quote for your individual circumstances.

We try to make the whole process as simple and straight forward as possible for you and we won't charge you a fee for our service either.

Gaining an approval in principle upfront and keeping it separate from the vehicle purchase means you're free to search multiple vehicle dealers to find the right vehicle at the right price, without being tied to any one particular dealer. After conducting a few checks on the dealer you find, we'll process the change of vehicle with the lender and organise for the finance documents to be sent to you. Once the agreement has been paid out to the dealer we'll let you know so you can then make arrangements for collection or delivery.

You can access our online application form here, or click the blue "Apply" button at the top of the page. You can also apply via the online calculator.

We are a trusted credit broker with a panel of competitive banks and lenders - click here to see recent Trustpilot and Google reviews from past customers.

What's the catch? There isn't one, this is how it should be. Our aim is to build long and lasting relationships with our business customers, it's as simple as that.

We're a company that care and put the customer at the heart of everything we do, and remember, we don't charge any fees for our service either.  We hope that, through excellent service, many enquiries will come from recommendations and word of mouth.