HP · Lease · Contract Hire
Which finance fits?
Three ways to fund the same van, with very different outcomes for cash flow, tax and ownership. Here is how they compare, and how we help you choose.
Three answers, one starting point
Find your fit
Answer three quick questions and we will point at the structure that usually suits. It is a starting point for a conversation, not a quote.
General guidance, not tax or financial advice. Finance subject to status and eligibility.
Answer all three and we will suggest a starting point. Your pick is highlighted in the comparison below.
Not sure? That’s the point of independent advice: tell us about your business and we’ll recommend the right structure.
Hire Purchase
Pay a deposit then fixed monthly instalments. The vehicle is yours at the end of the term.
- Monthly cost
- Medium–high
- Ownership at end
- Yes, yours outright
- VAT
- 100% reclaimable
- Tax relief
- AIA, 100% in year one
- Balance sheet
- Asset & liability shown
- Best for
- Long-term ownership
Finance Lease
Payments based on depreciation only, so monthly costs are lower. Return it or arrange a secondary lease at the end.
- Monthly cost
- Lower
- Ownership at end
- No, returned
- VAT
- 100% reclaimable on payments
- Tax relief
- 100% deductible, commercial vans
- Balance sheet
- Asset & liability shown
- Best for
- Regular upgraders
Contract Hire
A fixed monthly rental that can include servicing, tyres and road tax. No residual value risk.
- Monthly cost
- Fixed all-in
- Ownership at end
- No, returned
- VAT
- 100% reclaimable on payments
- Tax relief
- 100% deductible, commercial vans
- Balance sheet
- Off balance sheet
- Best for
- Fleet simplicity
Know what you need already? Send us a finance proposal and your advisor will take it to the lenders.
Figures are general guidance, not tax advice. Treatment depends on your business and HMRC rules at the time. We will talk you through what applies to you, finance is subject to status and eligibility.
Not sure which structure to pick?
That's the point of independent advice. Tell us about your business and we'll recommend the right fit.