Can you buy a double cabin on hire purchase?

Yes, you can purchase a double cab on instalment. When you pay in instalments, you purchase the commercial vehicle with financing and become the owner immediately, while paying off the amount in monthly instalments. This differs from leasing, where you do not immediately become the owner. Paying in instalments is particularly interesting for entrepreneurs who want to own the vehicle and include it in their company balance sheet. Most financiers require a deposit of between 10 and 30 percent, depending on your situation and the vehicle.

What is the difference between hire purchase and leasing for a double cab?

When paying in instalments, you purchase the double-cab van With financing, you are the immediate owner, whereas with leasing, you use the vehicle without immediate ownership. With payment by instalments, the car is listed on your company balance sheet and you pay a fixed monthly amount until the purchase price has been paid in full. With leasing, you pay for the use of the vehicle and ownership often remains with the leasing company.

The big advantage of paying in instalments is that you are the economic owner from the first payment onwards. This means that you can make all the modifications to your double cab that you need for your business, such as lettering, extra equipment or specific fittings. The vehicle is yours and you decide how to use it.

From a tax perspective, you can deduct the interest from your tax when paying in instalments. The investment deduction amounts to approximately 28 per cent of the interest, which means your actual interest burden is lower. With leasing, you deduct the full monthly instalment, but you have not built up any ownership at the end of the term.

For entrepreneurs who wish to work with the same vehicle for a long period of time, paying off the vehicle is often more advantageous. At the end of the financing period, you will have a fully paid-off double cab with no further monthly costs. With leasing, you will start paying again for the next vehicle at the end of the lease period.

What conditions must you meet to purchase a company car on hire purchase?

To purchase a double cabin on hire purchase, you must meet certain financial requirements. The most important condition is a clean credit record. An old, resolved credit rating may not be a problem, but an ongoing BKR credit rating often makes financing difficult. Financiers want certainty that you can meet your payment obligations.

For self-employed professionals and SMEs, your income must be stable and demonstrable. Financiers usually ask to see your latest annual accounts or VAT returns in order to assess your financial situation. Start-ups do not always need to have years of history, but they must be able to demonstrate that they can meet their monthly expenses.

A deposit significantly increases your chances of approval. The more you can pay up front, the lower the risk for the financier and the more favourable your terms will often be. With a finance lease, the car itself is the collateral, so no other security is required.

The application procedure is often simpler than you might think. Many providers work digitally and request the necessary information themselves, so you don't have to supply everything yourself. This makes the process faster and more accessible, especially for busy entrepreneurs.

How much do you have to pay up front for a double cabin on hire purchase?

The standard deposit for a double cabin is between 10 and 30 per cent of the purchase price. The higher your deposit, the lower your monthly payments will be and the more favourable your interest terms will often be. You can decide for yourself how much you want to pay as a deposit, depending on your financial situation.

A higher down payment has several advantages. Your monthly payments will be lower, making your cash flow easier to manage. In addition, you will pay less interest over the term of the loan because you are financing a smaller amount. This will ultimately save you a considerable amount on the total cost of your double cab van.

You can also trade in your current company vehicle and use its value as a down payment. This is a practical way to finance your new double cab without having to use your liquid assets immediately. The trade-in value will then be deducted from the purchase price of your new vehicle.

Some entrepreneurs choose not to make a down payment at all. This is possible, but it does mean higher monthly payments and more interest costs. For start-ups that need their liquid assets for other business investments, this may still be the best option, despite the higher total costs.

What should you pay attention to when comparing instalment offers?

The interest rate is the most important point of comparison between different offers. Don't just look at the nominal interest rate, but also at the actual costs after tax deductions. With financial leases, the interest rate is often around 9.5 per cent on an annual basis, but thanks to investment deductions, you effectively pay around 6.2 per cent.

Pay close attention to the term of the financing. A longer term means lower monthly payments, but you will pay interest for longer and the total costs will be higher. A shorter term means higher monthly payments, but will save you money in the long run. Choose a term that suits your cash flow and the expected useful life of your double cab.

Always inquire about the possibility of early repayment. Some lenders allow you to make additional repayments or terminate the financing early at no cost, while others charge a fee for this. If you expect to have extra money available in the interim, this flexibility is valuable.

Hidden costs can make an attractive offer more expensive than it appears. Pay attention to closing costs, administration costs and any compulsory insurance. Ask for the total amount you will repay over the entire term, including all costs. This will allow you to compare offers fairly.

A final instalment can significantly reduce your monthly costs. This is a higher final payment at the end of the term. At that point, you can choose to pay the final instalment and remain the owner, trade in the car for a value approximately equal to the final instalment, or enter into a new contract. This flexibility gives you options at the end of the term.

How Van Den Hurk assists with the hire purchase of a double cab

We understand that financing a double cab van is an important decision for your business. That is why we offer transparent and flexible solutions that suit your situation as an entrepreneur.

• Personalised advice: We take the time to understand your situation and advise you on the best financing option for your business.
• Flexible terms: Whether you are a start-up or an experienced entrepreneur, we will help you decide on the deposit, term and monthly payments that suit you best.
• Trade-in possible: You can trade in your current company vehicle and use its value as a deposit for your new double cab.
• Financial lease options: We offer financial leases whereby you are immediately the economic owner and the car is listed on your company balance sheet.
• Prompt processing: Our digital approach enables us to respond quickly, and you can often collect your new bus within a few days.
• Wide range: With 400 commercial vehicles in stock, you will always find one that suits your needs. double cabin that suits your needs and budget

Would you like to know what the options are for your situation? Contact us for a no-obligation chat about financing your double cab. Or view our current range online and use our stock alert service if you have specific requirements. This will keep you automatically informed when the perfect double cab van becomes available.