Hire Purchase and Lease Purchase are to all intents and circumstances the same product. Both methods of financing are ‘on balance sheet’ and in both cases the asset becomes your property. As a result, the total VAT on the capital value of the asset is paid up front and no VAT is payable on the monthly payments. The only real difference between the two products is that with Hire Purchase, the customer pays a percentage of the capital value as an upfront initial payment, and with Lease Purchase the customer pays a multiple of the monthly sum.
The most common Hire/Lease Purchase periods are 3, 4 or 5 years.
Faamco can offer Hire/Lease purchases on a variety of terms, and as a benefit, you, the customer, have access to our Vehicle Procurement Management and Build Process Management services.
Of course, should you, the customer, so wish, Faamco can add any of the operational services or many aspects of Faamco Management to the Hire/Lease Purchases in order to create a totally tailored solution to your requirements.