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This is a straightforward way for a business to finance a vehicle. Paying an initial deposit (can be a low as the VAT) followed by fixed monthly repayments, Hire Purchase allows you to budget monthly expenditure precisely in advance. It has worthwhile tax advantages and if ownership is a priority this is an extremely cost effective method of borrowing. - interest is 100% tax deductible
- 25% of the net value of the van can be offset against tax each year
- At the end of the agreement you become the outright owner of the vehicle
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