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Hire Purchase is a flexible form
of vehicle and asset funding. It can incorporate
a balloon payment to reduce monthly repayments although
carries more risk at the end of the contract, depending
upon balloon payment, although we provide guidance
on the setting of this. Vehicles or assets are shown
on the balance sheet.
- Fixed repayment costs
- Monthly payments can be lower, as
they may not be based on the full depreciation
cost
- Can Include a balloon payment at
the end of contract
- VAT on cost price can be claimed
back (other than for cars)
- Benefit from Automotives banking
contacts
- Reduced administration
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