BUS & COACH HIRE PURCHASE

HP is instalment financing for those who ultimately wish to own the asset and all associated costs of maintaining the bus or coach. It differs from lease primarily in ownership, but also it presents other accounting practices which may suit your business.

HOW IT WORKS

An HP agreement – unlike a lease or contract hire agreement – transfers ownership of the asset to the client, assuming regular payments are made according to the agreement. The agreement is based on fixed monthly payments for the capital cost plus interest.  The VAT is payable at the outset and included in the fixed monthly payments.

There is typically a deposit of 10% plus the VAT (on the cost of the asset) required with the balance repayable over 2 – 10 years, depending on the asset.

HIRE PURCHASE BENEFITS

  • The asset and associated hire purchase are shown on your balance sheet.
  • With fixed monthly payments, the VAT is payable at the outset and not monthly and therefore offers you the opportunity to directly reclaim capital allowances.
  • VAT deferments are possible to assist with cash flow and interest rates can be either fixed for the agreement term or variable linked to bank base rate.
  • Hire Purchase gives you immediate ownership of the asset and can be tailored to your cash-flow requirements.
  • When the finance agreement has been repaid, you own the asset.

WHY CHOOSE ASSET ALLIANCE

Whether it is Hire Purchase, Operating Lease or Finance Lease we can present all of the options enabling you to select the right finance solutions for your business.

With Hire Purchase, one key differentiating factor that helps lower the costs of your finance when compared to a broker are that we can invariably source the asset direct from the manufacturers on large fleet terms, thereby reducing the amount to finance.

All of the features and benefits of our HP and finance options can be discussed in more detail with your Account Manager, who will always take a consultative approach to presenting you with options on HP, leasing and finance and potential refinancing of your existing leases and loans to develop the best and most cost-effective solution for your specific business needs.

Contact us now on 01425 485685 to find out how our dedicated teams can help meet your individual needs.

AWARD-WINNING SERVICE

We are thrilled to have retained our title as Commercial Motor’s Finance Provider of the Year for our flexible approach to funding.

BUS & COACH FINANCE AND LEASING SERVICES

At Asset Alliance Group, our primary role is to help you select the best option for your business to optimize your P&L, balance sheet, cash flow and tax management through the range of options that are available to you.

OPERATING LEASE

An operating lease will suit customers who are looking to increase, upgrade or renew their vehicles at the lowest cost with a simple monthly payment over a negotiated period and on personalised terms.

FINANCE LEASE

A finance lease differs from an operating lease in many ways but it remains a fixed term contract which allows you the benefit of an asset without ultimate ownership.

HIRE PURCHASE

HP is instalment financing for those who ultimately wish to own the asset and assume all associated costs of maintaining the bus or coach. It differs from a lease primarily in ownership, but it also presents other accounting practices which may suit your business.

A UK LEADER IN COMMERCIAL VEHICLE AND TRANSPORT SOLUTIONS