Certainly, it gives you a lot of buying power, but bear in mind that you may need this capital for other purposes.
Also, with many manufacturers offering low and 0% finance deals, you could be better off spending somebody else's money and keeping yours in a high interest account instead.
Hire purchase is popular and the money lending market is competitive, so shop around for the best APR rate before deciding.
Remember, with HP you are effectively borrowing money plus interest on an depreciating, fast deteriorating asset.
A spin-off to conventional HP is Personal Contract Plan (PCP). Here, the future value of the vehicle is calculated and deducted upfront, meaning you borrow less so the monthly outlay is reduced.
At the end of the term you have three options  pay the final lump sum (usually the projected value of said vehicle); use the old van as a down payment towards a new one and continue the deal; or simply hand in the keys and catch the bus home.
Essentially, PCPs are a good idea, although you must ensure the future fixed value of your van is acceptable or you will lose out when the contract terminates.
Have you considered leasing? This is allows you to budget for how much your van will cost to run right from the outset. Depending on which plan you choose, leasing or contract hire will take care of all maintenance and even insurance costs.
Speak to your accountant first, but leasing is more tax efficient than purchasing because on HP the VAT is paid in advance, while contract hire leasing is paid for in monthly instalments.
Contract hire isn't registered on a firm's balance sheet either, which may be useful. Certain leasing deals also allow you to buy the vehicle after you've used it.
As with hire purchase, the leasing and hiring market is extremely cut-throat and you should take your time to sort out the best deal. Incidentally, main dealers have some of the most attractive plans on offer.
Be aware that if you have to cancel the contract early you could be hit with a penalty  so read the small print.
Finally, what about straight rental? Many companies operate special schemes for longer-term usage. It's more expensive than conventional HP or leasing, but you can return the vehicle when it's not required  ideal for firms which may need an extra van at certain times of the year.
Whichever route you choose, speak to an industry expert or your accountant first.
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Also, with many manufacturers offering low and 0% finance deals, you could be better off spending somebody else's money and keeping yours in a high interest account instead.
Hire purchase is popular and the money lending market is competitive, so shop around for the best APR rate before deciding.
Remember, with HP you are effectively borrowing money plus interest on an depreciating, fast deteriorating asset.
A spin-off to conventional HP is Personal Contract Plan (PCP). Here, the future value of the vehicle is calculated and deducted upfront, meaning you borrow less so the monthly outlay is reduced.
At the end of the term you have three options  pay the final lump sum (usually the projected value of said vehicle); use the old van as a down payment towards a new one and continue the deal; or simply hand in the keys and catch the bus home.
Essentially, PCPs are a good idea, although you must ensure the future fixed value of your van is acceptable or you will lose out when the contract terminates.
Have you considered leasing? This is allows you to budget for how much your van will cost to run right from the outset. Depending on which plan you choose, leasing or contract hire will take care of all maintenance and even insurance costs.
Speak to your accountant first, but leasing is more tax efficient than purchasing because on HP the VAT is paid in advance, while contract hire leasing is paid for in monthly instalments.
Contract hire isn't registered on a firm's balance sheet either, which may be useful. Certain leasing deals also allow you to buy the vehicle after you've used it.
As with hire purchase, the leasing and hiring market is extremely cut-throat and you should take your time to sort out the best deal. Incidentally, main dealers have some of the most attractive plans on offer.
Be aware that if you have to cancel the contract early you could be hit with a penalty  so read the small print.
Finally, what about straight rental? Many companies operate special schemes for longer-term usage. It's more expensive than conventional HP or leasing, but you can return the vehicle when it's not required  ideal for firms which may need an extra van at certain times of the year.
Whichever route you choose, speak to an industry expert or your accountant first.
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