Hire Purchase provides operators with an easy way of
initially renting, and ultimately buying, a new commercial
vehicle through MAN Financial Services (MFS).
A Hire Purchase package is, in some respects, similar to
Finance Leasing. The important difference being: ownership
of the vehicle invariably passes to the operator at the end
of the hire purchase period - once an ‘option to purchase
fee’ has been paid.
A customer choosing a Hire
Purchase option can benefit
by claiming any capital or
writing down allowances
available on the asset.
An MFS Hire Purchase
agreement, enables the
operator to have full use of the vehicle for a specific hire
period, in return for the regular payments of rentals. The
operator simply commits to paying a total rental amount
which covers both the cost of the asset, and the financing
costs. Provided the contract conditions have been met, the
operator has the option to purchase the vehicle at the end
of the hire purchase period.
Typically this option is nearly
always exercised, as it only
costs the operator a fraction
of the original purchase price
to do so.
Under Hire Purchase contracts, operators can include the
vehicle as a fixed asset in their balance sheet, benefiting
from capital allowances, and further reducing their tax bill
because interest paid can be offset against pre-tax profits.
Hire Purchase provides a flexible and cost-effective
alternative to bank loan funding, and can even provide
operators with an additional line of credit.
 Click here to download the Hire Purchase brochure
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A MAN Group Company