Hire purchase is instalment commercial vehicle finance for those who ultimately wish to own a truck or trailer and assume all associated costs of maintaining the vehicle. It differs from a lease primarily in ownership, but it also presents other accounting practices which may suit your business.

A hire purchase agreement transfers ownership of the asset to the client, assuming regular payments are made according to the agreement. The commercial vehicle hire purchase 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.

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


Acquiring large ticket items like new trucks and trailers can place severe strain on a company’s cash flow. When businesses hire commercial vehicles as part of a hire purchase agreement, they get immediate use of the asset while spreading the payments over several months. Hire purchase benefits include:

  • The asset and associated hire purchase are shown on your balance sheet
  • With fixed monthly payments, VAT is payable at the outset and not monthly. This provides an opportunity to directly reclaim capital allowances
  • Payment of VAT can be deferred when cash flow is restricted, and you can choose to fix interest rates for the term of the hire purchase agreement or opt for variable interest rates linked to the Bank of England base rate
  • Commercial Vehicle Hire Purchase gives you immediate ownership of a truck and trailer, and can be tailored to your cash flow requirements
  • When the asset finance agreement has been repaid, you own the asset


Alongside award-winning service and support, we deliver three unique differentiating factors that allow us to lower the costs of your operating lease:

  • We source new trailers, trucks, and other commercial vehicle types direct from the manufacturers on large fleet terms – this allows us to pass on the best commercial vehicle deals to our clients
  • At Asset Alliance Group, we understand accurate residual value setting
  • Our aim is to retain and utilise assets over their entire useful life. This allows us to reduce risk on residual values – a competitive advantage we build into our pricing

The Asset Alliance Group Commercial Vehicle Fleet Management team has many years’ experience in the responsible management of truck and trailer fleets. All features and benefits of our contract hire, asset leasing and Hire Purchase options, as well as potential refinancing of your existing leases and loans, can be discussed in more detail with your Account Manager.

Contact us now on 01902 625330 to find out how our dedicated teams can help meet your individual commercial vehicle hire purchase needs.


6 x Commercial Motor Award Winners

  • Two-time Finance Provider
  • Two-time Rental, Leasing and Contract Hire Provider
  • Independent Dealer of the Year
  • Service to the Industry

See our full range of finance and hire purchase services

Asset Alliance Group’s primary role is to help you select the best trailer or truck finance option for your business in order to optimise your profit & loss, balance sheet, cash flow and tax management through a range of options available to you.


As contract hire and leasing specialists, we offer an industry-leading contract hire product with or without maintenance that is built on an unrivalled understanding of the commercial vehicle sector. Our contract hire solutions range from the smallest single trucks and trailers to low emission and alternative fuel vehicles and fleet management of the UK’s largest logistics providers.


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


A finance lease differs from other commercial vehicle leasing in many ways, but it remains a fixed-term contract which allows you the benefit of an asset without ultimate ownership.


Hire purchase is instalment financing for those who ultimately wish to own the asset and assume all associated costs of maintaining the vehicle or trailer. It differs from asset leasing primarily in ownership, but it also presents other financing methods that may better suit your business.


With almost 5,000 vehicles under management, we are true commercial vehicle specialists in servicing and maintaining trucks and trailers and all forms of commercial vehicles.


There are many circumstances when commercial vehicle rental makes sense – it can support you when your vehicles are off the road for any unforeseen reason or simply increase your logistics capacity at peak periods.