+44 (0) 1223 665890 enquiries@fasttrackfinance.co.uk

HP/Lease Purchase

We’ll structure the right deal at the right price to save you money.

HP / Lease Purchase

Your Name (required)

Your Company (required)

Your City (required)

Your Email (required)

Your Phone Number (required)

Vehicle Required
Manufacturer :

Model :

Maintenance (required)
 Yes No

Commercial Vehicle (required)
 Yes No

New or Used? (required)
 New Used

Length of Finance
(required in months)

Miles per Annum:


24-logo-smlHP / Lease Purchase


Finance Lease
This form of leasing offers a fixed payment over a flexible period of the lease with the responsibility of the vehicle disposal lying with the client. Any reward or risk upon disposal is entirely with the client. Finance lease can be offered with a final residual payment or without on a fully amortized basis with all rentals attracting VAT. The vehicle is capitalized onto the client’s balance sheet and is countered on the liability side by the capital element of the outstanding rentals.

Finance Lease offers a tax efficient funding plan where organizations want to take away  the responsibility for the resale and disposal.

Hire Purchase

A tried and tested method of achieving vehicle ownership is hire or lease purchase. Usually hire purchase (HP) is subject to an initial deposit followed by monthly payments until the full amount of the loan including interest is repaid, the final payment usually has an option fee added and when this is paid the title of the vehicle passes. For the record, conditional sale is a similar product although title passes automatically upon the agreements inception.

Hire Purchase operates in a similar way and has a residual or balloon payment at the end of the agreement. The benefit in looking at lease purchase over hire purchase is that the same value of vehicle can be purchased over the same period at a lower monthly cost as a proportion of the outstanding amount is incorporated into the fixed residual or balloon payment. Both options offer on balance sheet funding with access to writing down allowances for tax and accounting purposes, the purchaser is treated as the owner of the vehicle when the agreement is signed and not when the purchase option is exercised. All interest payments are deductible from profits as a trading expense. No VAT is applicable to these finance plans.

Ideal funding method for organizations who require the vehicle to be shown as an asset and wish to take the responsibility for the resale and disposal.

At the end of the contract this then gives you two options to discuss with us :

  • Hand the vehicle back to Network should the value of the vehicle be less than the set final payment. If electing for this option you should be aware that the vehicle will be subject to an inspection for damage and a mileage check versus your contracted mileage. Charges will be applicable if the vehicle is returned outside of our Fair Wear & Tear guidelines and if the vehicle is returned over the contracted mileage.
  • Alternatively you may choose to pay the option to purchase fee and the final rental. Network will then transfer ownership of the vehicle to you, allowing you to keep the vehicle or sell it for use as a deposit for your next vehicle.



  • HP or leasing allows companies to control and deploy assets without significant drain on working capital
  • fixed-rate funding makes budgeting easy as the lessee has clear sight of future expenditures
  • flexibility of repayment structuring is available to allow for seasonal business (eg one repayment a year), and to reduce monthly outlay by factoring in a ‘balloon’ payment at the end of the term
  • leasing prevents the risk of an asset’s value depreciating quickly and provides flexibility to enter into a new contract at the end of the original lease’s fixed term
  • financing asset purchases can be more tax efficient than standard-term loans due to lease payments being booked as expenses. Although asset depreciation also provides tax benefits, the usable lifetime of the asset will vary depending on the asset and on local regulation
  • high accessibility of financing for businesses due to the financing being secured with the leased asset and the asset being owned by the financing company
  • in certain circumstances there is maintenance included within the terms of the agreement.


  • total sum of capital payments for HP or leasing will be higher than the full payment on the asset purchase
  • administrative complexity and costs will be greater if any covenants are applied to the arrangement. For example, updates on change of equipment locations
  • if the business changes its strategy, resulting in the leased asset no longer being useful, there can be early termination charges or restrictions on subleasing.


Really impressed with the staffs knowledge of the various vehicle finance options & tax allowances, with their desire to negotiate the best finance terms and obtain increased discounts from dealer, ensured our staff got the best advice & a better vehicle than planned.

Ian Norton

Managing Director, GRWP Group

It was an excellent service from start to finish, fast and effective with excellent customer service – no hesitation in recommending or using Fasttrack Finance again. The independent advice given was priceless to all company car users.

Elisa Bell

Associate Partner, Keefe, Bruyette & Woods

Awesome company, there when you need them, open 24/7 and only to willing to help, knowledgeable in every aspect of vehicle funding, which ensured that those members of staff opting out of the company car scheme, understood their contractual financial and personal tax liability.

Johnathan Davies

Finance Director, BJ Toys


Fasttrack Finance funders are members of the British Vehicle and Rental Leasing Association