BUS & COACH HIRE PURCHASE
Hire purchase is instalment asset financing for those who ultimately wish to own the bus or coach and all associated costs of maintaining it. It differs from asset leasing primarily in ownership, but also it presents other accounting practices which may suit your business.
Their advice is invaluable. We’ve benefitted from carefully negotiated, flexible, and cost-effective funding for our fleet"Dai Powell, Chief Executive of HCT Group
"Asset Alliance Group is the right fit for us; We get the latest in fuel efficient buses and we’re able to benefit from the financial balance between leasing and hire purchase"Sandra Whitelaw, MD, Whitelaws Coaches
HOW IT WORKS
A bus or coach hire purchase agreement – unlike an operating lease, finance 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
All asset funding and leasing options have their benefits, with a bus or coach hire purchase:
- The asset and associated hire purchase are shown on your balance sheet
- 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
- You have immediate ownership of the bus or coach and the hire purchase agreement can be tailored to your cash-flow requirements
WHY CHOOSE ASSET ALLIANCE GROUP
Whether it is hire purchase, operating lease or finance lease Asset Alliance Group can present all suitable finance options enabling you to select the right solutions for your business.
With hire purchase, one key differentiating factor that helps lower the costs of your finance when compared to a broker is that we can invariably source the asset directly from the manufacturers on large fleet terms, thereby reducing the amount to finance.
We have key supply relationships not with one or some, but with all leading European bus and coach manufacturers, including Volvo, Scania, Optare, Mercedes, Trizar, VDL, Van Hool, MAN, and Alexander Dennis.
To discuss how a hire purchase agreement can benefit your business contact your Account Manager or call our bus and coach team on 01425 485685. We always take a consultative approach to presenting options on hire purchase, operating lease and finance lease as well as fleet management, to develop the best and most cost-effective solution to suit all specific business needs.
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, we focus on helping you select the best bus or coach finance and leasing option for your business. We aim to optimise your profit & loss, balance sheet, cash flow and tax management through the range of options that are available to you.
Hire purchase 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.