Tom Hogan Motors, Smithstown, Shannon, Clare.
Tel: 061 477600, Fax: 061 363554

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Hire Purchase for business

When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.

Hire Purchase for Business
Hire Purchase is a finance agreement whereby your chosen vehicles are purchased, on your behalf, by Toyota Finance*and hired to you / the business, for a pre agreed term. (Usually 3-5 years)

With Hire Purchase, the cost of the vehicle(s) together with the interest cost for the chosen period is repayable by fixed monthly installments.

For business and taxation purposes, vehicles acquired under a Hire Purchase arrangement are treated as fixed assets. Capital allowances therefore may be claimed at 12.5% per annum, however this is subject to a limit per vehicle (saloon cars),currently set by the Revenue at €22,000.The interest cost may also be written off over the term of the agreement, however this is subject to apportionment where the cost of the vehicle exceeds the Revenue limit.

With Hire Purchase, you may also defer a portion of the capital cost until the end of the agreement at which stage you then pay a final "balloon" payment. Upon completion of the Hire term you can obtain full ownership of the vehicle (s) on payment of a small 'purchase fee. (€63.49)

Benefits of Hire Purchase.

  • The product is a straightforward one with no tax implications on completion of the agreement.
  • Fixed installments provide for more accurate budgeting and forecasting
  • Funding vehicles by way of a separate line of credit leaves working capital free to be used where it is needed most - in the business.
  • As well as preserving valuable working capital, Hire Purchase can provide more accurate cash- flow management and control.
  • The paperwork is straightforward and simple to complete allowing you to take delivery of your brand new Toyota with a minimum of fuss.

*Toyota Finance is a trading name of Bank of Ireland Finance.
Lending criteria and terms and conditions apply

Click Here to contact our Business Manager who can assist you with any of your finance enquiries.