Car Hire Purchase

• An agreement to buy a vehicle usually by installments for the full amount over the term agreed.
• Title does not pass until all payments have been made, but tax and accountancy treatment assumes you have title from day one.

• Pure and simple hire purchase plan for a car.
• Is shown as a company asset on your balance sheet thereby attracting standard capital allowances and interest is usually offset against Corporation Tax liabilities.
• No VAT is payable on the repayments.

• The outstanding debt must also be shown on the balance sheet.
• All vehicle running costs including the risks are yours.
• There will be a charge if you return the vehicle early.
• You may not enjoy manufacturer bonuses.