Hire Purchase is one of the finance packages that we offer and allows businesses (small and large) to spread the payments for a vehicle over an agreed period of time e.g. 2 – 5 years. Once the last payment has been completed, the vehicle is then owned by you and your business.
Hire Purchase can be a lucrative and sensible option for both small and large companies looking to take advantage of a number of benefits including;
A member of our business team will take you through and explain every aspect of the purchase and will tailor make a plan for your monthly repayments and term to suit your business needs based on an expected annual mileage calculation. The Guaranteed Future Value is equal to the final Optional Purchase Payment. You don't have to decide whether to make this payment and keep the vehicle until the end of the agreement. You simply choose how long you want to keep the van, how much you would like to pay as an initial deposit and the monthly payments that suits your business best. When the agreement comes to an end you can either purchase the vehicle by paying the Guaranteed Future Value, return the vehicle or part-exchange the vehicle.
Businesses often benefit from contract purchase agreements like Mercedes-Benz Agility because they provide lower monthly payments and Mercedes will guarantee the future value of the vehicle. This allows many companies to have the freedom to either purchase the vehicle or not at the end of the agreement. Furthermore, the flexible nature of a contract purchase means that businesses can decide on the size of the deposit and monthly repayments. Purchase contracts help mitigate risk of depreciation and all repayments are not subject to VAT.
The Benefits of Agility
However, as repayments are based on the price of the vehicle at the start of the contract through to the end, monthly repayments are often much lower than other finance schemes. Rentals are allowable against taxable profits and businesses can benefit from the knowledge that their costs are always fixed and covered by scheduled maintenance as part of the agreement.
To find out more about how your business could benefit from Mercedes-Benz Contract Hire, get in touch with the Western Commercial team. We’re always happy to answer any questions in a friendly, honest and easy-to-understand manner.
The Benefits of Contract Hire
Monthly rentals are based on the difference between the price of the vehicle at the start of the agreement and its projected residual value, plus finance charged. Therefore only a proportion of the vehicle's value is being repaid which avoids any large initial outlay and reduces the monthly rental.
At the end of the lease period the vehicle is simply returned, freeing you from any further obligations apart from any excess mileage or damage charges, if applicable. Repayments are subject to VAT
The Benefits of Operating Lease
Repayments are subject to VAT
The Benefits of Finance Lease