>> commercial higher purchase
A commercial hire purchase is a type of car lease where the customer can obtain the motor vehicle by hiring it over the repayment term. The transfer of title for the motor vehicle, from lender to borrower, will be made when the finance provider receives the last rental payment due according to the hire purchase contract..
A commercial hire purchase is also known as a hire purchase, CHP, offer to hire or term purchase.
With Commercial Hire Purchase, the finance provider acquires the motor vehicle on behalf of the customer and the customer hires the motor vehicle from the finance provider over an agreed period of time for a fixed monthly repayment.
The finance provider retains ownership of the motor vehicle for the duration of the hire purchase contract. However once the customer makes the last payment (balloon payment) – vehicle ownership is passed to them.
However, the customer is still able to claim a tax deduction for the depreciation on the motor vehicle as well as the interest component of the hire purchase repayments where the motor vehicle is used for business related purposes.
The decision to have a balloon payment at the end of the hire purchase contract or not is entirely up to the customer.
You can choose not to have a balloon payment but rather to pay the motor
vehicle down to zero. Once the final lease payment is made, you own the motor
Why consider a Commercial Hire Purchase?