Hire Purchase

Staffcars can arrange (through a third party) a choice of fixed and variable interest rate schemes.

How does it work?

Staffcars supply the vehicle, you pay a monthly amount for an agreed period and ultimately you own the vehicle.  The details of the agreement can be tailored to your needs and budget, based on the larger initial payment and / or fixed balloon payment and a range of variable and fixed interest rate plans.

Benefits

1) Lower initial outlay than outright cash purchase

2) The vehicle appears as an asset on your balance sheet

3) You can claim capital allowances

4) A choice of fixed or variable interest rates

5) Interest payments can usually be offset against taxable profits

There can be drawbacks though.  Monthly repayments are normally higher than with contract purchase and you cannot reclaim VAT on the vehicle's purchase price.  You are responsible for all the risks of owning, administering, running, maintaining and disposing of the vehicle.  Additional services such as maintenance, RAC cover and third party fleet management, are not included, although Staffcars can provide these for a fixed monthly cost.