If you want to use your car predominantly for business purposes, and wish to ultimately own your vehicle at the end of the agreement term, Commercial Hire Purchase may be the right solution for you.
The Commercial Hire Purchase (CHP) agreement is simply a contract where the financier (the ‘owner’) allows you (the ‘hirer’) the right to possess and use a car or other vehicle in return for regular payments. A balloon payment (a final payment made at the end of the term – ideally this payment should be no more that the estimated value of the car at that time) is optional with a hire purchase agreement.
Upon completion of the Commercial Hire Purchase agreement, and following your final payment, full vehicle ownership is transferred to you.
Once you have decided on the vehicle of your choice, we can help you determine the most suitable term, taking into account the monthly sum you are planning to pay.
Monthly payments are then set for the entire contract term, giving you a reliable figure to plan your business spending, and structure your budget for the period of the agreement. To reduce your monthly commitment you can either opt for a longer term or incorporate a balloon payment at the end of your contract. Upon completion of the Commercial Hire Purchase agreement, and following your final payment, full vehicle ownership is transferred to you.