Here the Full Invoice Price is paid by the finance company. As the customer you will then repays the Finance Company plus Interest over a fixed period of 24 to 60 months. The total repayment cost including interest is split equally over the finance period. At the end of the period the Title passes to you.
During a Hire purchase the finance company should not charge VAT on the finance element of the repayments. As you will be the owner of the vehicle tax relief for depreciation can be claimed via capital allowances, which is determined by the car's CO 2 emissions.
If a Hire purchase seems like the right business purchasing option for you then contact your nearest Vantage centre and ask to speak to the Business Centre Manager. You can use our meet the team function to get to know the Manager in your area. Alternatively you can submit an enquiry form online and the your local Business Centre Manager will get back to you shortly.