HIRE PURCHASE

HP 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 a lease primarily in ownership, but it also presents other accounting practices which may suit your business.

A HP 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

Hire Purchase is often the preferred route to immediately owning the asset but spreading the payments monthly for cash flow purposes. Benefits include:-

  • 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

In addition to an award winning service and support, we aim to deliver three unique differentiating factors that help lower the costs of your operating lease:

  • We can source the asset direct from the manufacturers on large fleet terms
  • We understand accurate residual value setting
  • We aim to retain and utilise assets over their entire useful life enabling us to reduce risk on residual values which enable further competitive advantage in our pricing.

Our Asset Alliance Fleet Management team has many years’ experience in the responsible management of truck and trailer fleets. All of the features and benefits of our contract hire, lease and HP options and 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 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.

See our full range of 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 commercial vehicle 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.

FLEXIHIRE

For companies that require a contract hire arrangement, but with a more flexible period arrangement, we also offer FlexiHire. It is as per our Contract Hire arrangements, but is offered on a 12 month rolling contract.

HIRE PURCHASE

HP 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 a lease primarily in ownership, but it also presents other accounting practices which may suit your business.

FLEET MANAGEMENT

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.

RENTAL

There are many circumstances when rental makes sense. It may support you when your vehicles are off the road for any unforeseen reason or simply to increase your logistics capacity at peak periods.

CONTRACT HIRE

As contract hire specialists, we offer an industry-leading contract hire product with or without maintenance, built on an unrivalled understanding of the commercial vehicle sector.  Our contract hire solutions range from the smallest single truck to the fleet requirements of the UK’s largest logistics providers.

A UK LEADER IN COMMERCIAL VEHICLE AND TRANSPORT SOLUTIONS