Hire Purchase

How does it work?

Hire purchase combines elements of both a loan and a lease. You pay an initial deposit and then pay off the balance and any interest to your lender in monthly instalments over an agreed time period. At the end of the period when all payments have been completed you own the vehicle.

The monthly payments are determined by the retail price of the vehicle, the deposit amount and the length of the contract.

Features and Benefits of Hire Purchase

• Low deposit option doesn’t tie up personal or business assets
• You decide both the deposit amount and the repayment term
• Fixed monthly payment makes budgeting simple
• At the end of the period you gain ownership of the car
• Tax allowances on all interest payments for business users
• No VAT on payments, VAT is paid within the initial deposit
• No mileage restrictions

Who is Hire Purchase for?

Hire Purchase is the most common form of vehicle finance. It offers the option of a low initial deposit, a real benefit to those unable to make a large initial payment. It offers several benefits to business users who are able to reclaim tax on interest payments and because the vehicle is classified as an asset, the depreciation of the car can be written off against taxable profits.

*Finance available subject to status. This finance offer is only available through Black Horse Ltd. St. William House, Tresillian Terrace, Cardiff, CF10 5BH. Offers available 18th March 2013 to 30th September 2013 on 2013 model DFSK Loadhopper Vehicles. Offer may be varied or withdrawn at any time.

Contract Hire

How does it work?

Contract hire means taking control of a vehicle for a fixed period and mileage amount; however you never own the vehicle. An agreement is reached with the leasing company to make fixed payments (usually monthly) for the duration of the contractual period. At the end of the contract you return the car to the contract hire company. Your contract hire payments will be determined by a number of factors;

• The retail price of the vehicle
• The residual value of the car – the estimated worth of the vehicle at the end of the contract taking into account depreciation, mileage, and condition. You then basically pay the difference between the two figures in monthly instalments.

Features and Benefits of Contract Hire

• Fixed rentals for the whole package, making budget planning easier
• Flexible terms to meet your requirements with variable duration and mileage terms
• Maintenance of vehicles can be included in monthly rentals, and so spread the cost
• Contract hire removes depreciating assets from the balance sheet and the associated risks of owning vehicles
• Businesses can reclaim VAT

Who is Contract Hire for?

Contract hire is ideal for those who want to use the vehicle for the contractual period, simply return it and walk away without the associated issues of selling the vehicle for another one. Our contract hire agreement also includes the option of taking out a maintenance package.

Contract hire enables you to fix most of the vehicle costs – you know what you will have to pay and when, helping you forecast your monthly expenditure. VAT registered companies are able to reclaim VAT on both the payments made and any maintenance package costs.

If you want to be able to budget with fixed monthly costs, like the idea of not having to sell the car on and want to drive a new vehicle every few years, then contract hire is ideal.

*Finance available subject to status. This finance offer is only available through Black Horse Ltd. St. William House, Tresillian Terrace, Cardiff, CF10 5BH. Rentals based on 6x 47 payment profile. 10,000 miles per annum, non maintained. All prices exclude VAT. Rental calculations are correct at time of distribution however, Black Horse Contract Hire reserve the rights to change any of the above rentals at any time. All quotations are valid from the 1st April 2013 to 30th June 2013. Offer may be varied or withdrawn at any time.