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Hire Purchase v Lease Purchase

HIRE PURCHASE

**THE MOST POPULAR AND FLEXIBLE WAY TO FINANCE YOUR NEW VAN**

This is a loan secured against the van. You agree on a repayment period (normally 12-60 months) with fixed monthly payments. At the end of the agreement, you take the full title of the vehicle after a small option to purchase payment has been made.
  • You pay a deposit and the **full VAT upfront** (VAT is usually reclaimable for VAT-registered businesses).
  • Available on NEW and PRE-REGISTERED vans.
  • Flexible Duration (12 - 60 months).
  • Option of **VAT deferral** of up to three months (subject to conditions).
  • **You own the vehicle** at the end of the agreement.
  • The vehicle sits on the **Balance Sheet** of your accounts.
  • Tax advantage of **Capital Allowances** (Annual Investment Allowance) can be claimed.
  • Option to have a **'balloon payment'** to lower monthly costs.

LEASE PURCHASE

**FUNDING OPTION TO SUIT NON VAT REGISTERED BUSINESSES**

You chose the van and then simply rent it back over an agreed period. The van belongs to the finance company throughout the term of the agreement. At the end of the agreement, ownership can pass to you via a third party for a small sale proceeds figure.
  • Flexible Deposit
  • Available on NEW and PRE-REGISTERED vans.
  • Flexible Duration
  • Flexible Deposits
  • No upfront VAT - This is paid every month along with your monthly rentals.
  • You can claim the vat portion of the monthly payments back from HMRC
  • Offset leasing interest charges against your profits.
  • Ideal for all types of businesses, where a low initial outlay is required.