Business Hire Purchase (HP):
Own Your Vehicles with Fixed Monthly Payments
Business Hire Purchase (HP) is a straightforward way for businesses to purchase vehicles while spreading the cost over a fixed period. Unlike leasing, you own the vehicle at the end of the agreement, making it ideal for companies that want long-term assets without a large upfront investment.
This option is perfect for businesses that need full ownership of their vehicles while maintaining control over cash flow.
How Does Business Hire Purchase Work?
- Choose Your Vehicle – Select the car, van, or fleet that best suits your business needs.
- Pay an Initial Deposit – Usually 10%–50% of the vehicle’s value.
- Fixed Monthly Payments – Spread the cost over 1 to 5 years, making budgeting easier.
- Own the Vehicle at the End – Once the final payment is made, the vehicle is yours outright.
Unlike leasing options, there are no mileage restrictions or end-of-term return conditions—your business owns the asset.
Why Choose Business Hire Purchase?
✔️ Full Ownership – Own the vehicle outright once payments are complete.
✔️ Fixed Monthly Costs – Predictable payments make budgeting and cash flow management easier.
✔️ No Mileage Limits – Ideal for businesses that cover high mileage.
✔️ Tax Benefits –
- The vehicle appears as a business asset on your balance sheet.
- You may be able to claim capital allowances and offset interest payments against taxable profits.
- VAT-registered businesses can reclaim VAT on commercial vehicles.
✔️ No Depreciation Concerns from a Lender – Since you own the vehicle, you are free to keep it as long as you like without worrying about lease restrictions.
✔️ Flexible Loan Terms – Choose a repayment period that suits your business (typically 1–5 years).
✔️ Option to Settle Early – Most agreements allow early settlement if needed.
Who is Business Hire Purchase For?
✅ Businesses that want to own their vehicles rather than lease them.
✅ Companies that cover high mileage and don’t want contract restrictions.
✅ VAT-registered businesses that want to reclaim VAT on commercial vehicles.
✅ Businesses that prefer fixed payments but want an asset at the end.
However, if you prefer lower monthly payments and don’t need to own the vehicle, other funding options like Business Contract Hire (BCH) or Finance Lease may be more suitable.
LVC Central Ltd is a credit broker not a lender and is authorised and regulated by the Financial Conduct Authority -Reference number: 718938. We may receive a commission payment from the finance provider, one of our selected panel of funders. Terms and conditions are available on request. Webcars is a trading style of LVC Central Ltd. Registered in England Number 3102865. Registered Office: 2 Cosgrove Road, Old Stratford, Milton Keynes MK19 6AF. BVRLA membership number: 2126