Hire Purchase for Cars, Vans or Motorbike
Hire Purchase is a finance loan agreement, under which, you, the client, obtain legal title to the car, van or bike, once all finance repayments have been made. It is also known as a consumer loan.
In some cases, an option to purchase fee may be payable with the final payment of the hire purchase agreement. Where this option is included in the hire purchase agreement, it is usually a nominal fee.
The legal title passes once the final hire purchaser payment has been made, although for tax purposes, the client is regarded as the owner of the vehicle from the outset.
Hire Purchase with balloon payment, is a variation on the basic hire purchase product and is growing in popularity in the UK .
The size of the balloon payment varies according to the individual client, but the larger that you set the balloon payment for the end of the term, the lower your monthly payment will be.
At the end of the term of the hire purchase agreement, you can either pay out the full amount in one hit or refinance the balloon amount and continue paying off the car, van or bike, in monthly installments.
Contact us now, to find out more about Alpha Leasing arranging hire purchase on the vehicle of your choice, and how it could benefit you and your company.
