Any Vehicle make and model
New or Used vehicles
Additional Credit Line
Streamlined Payments
Improved Cash Flow
Protects Working Capital
Potential Profits on Disposal
Tax Efficient (100%)
Improved Budgeting
VAT Free
Flexible Upgrades 

Hire purchase is a vehicle funding product designed to completely pay for a vehicle in full over the period of the loan agreement period. This means that you are repaying both capital and interest per month under a standard hire purchase agreement.The source of funds used are hire purchase based which are applied to a repayment structure that is often referred to as "fully amortized" which means to the death.
Under this arrangement the vehicle's future sale value is NOT taken into account, and therefore a "Balloon" or final residual or deferred payment does not apply.
Part of the calculation of your monthly payment is based on three key factors,
      1. The amount of the loan (often referred to as the "advance") 
      2. The period you wish to run the vehicle for or the term of the loan
      3. The amount or fixed rate at which the interest charges will be applied at
At the end of the agreement period and all monies due have been paid there are many options as to how you treat the vehicle going forward.

      1.The vehicle is refinanced for a further term and funded at an amount greater, the same as or less than the vehicles market value at that time. This option depends on the vehicles age and mileage at the time of refinancing, as well as the type of vehicle as to whether it is suitable for such treatment. 
      2. The vehicle now fully paid for is kept free from and unencumbered by any loan and is continued to be operated for the balance of its useful life. In some instances this is especially appropriate if you require a flexible approach to the timing of your vehicle purchasing and replacement. 
      3.The vehicle is part exchanged against a suitable replacement. This will normally be a transaction carried out between the client and tmc vehicle solutions. But can be done so through any party the client may choose at that time.

NB it is worth remembering that each of these areas can counter balance one another, for example where the mileage may have gone higher than anticipated but the vehicle's condition and service history is immaculate, one compensates the other.

Hire Purchase: VAT

Hire Purchase uses "hire purchase" funding and because it is a "purchase" or loan facility the monthly charges are "payments" and not "rentals" and therefore do not attract VAT. This product is therefore very well suited to clients who are not registered for VAT.

Hire Purchase: Tax Treatment

If the hire purchase agreement is taken out between ourselves and a business or corporate body, the vehicle being funded through a HP facility, will be treated as a capital asset on the company's books in accordance with accounting practices laid down by the Inland Revenue. As such it will attract Capital Allowances to offset against tax giving a Tax Written Down Value or "TWDV" each tax year that the vehicle is kept. At the same time the vehicle or asset will be depreciated in accordance with your company accounting policy (most businesses depreciate their vehicles at a rate of 25% per annum) giving a Net Book Value or "NBV". The two should not be confused with one another, the "TWDV" is used purely for tax purposes and the "NBV" is used as an asset value.
We will always be happy to provide any "whiz tax scenario" should you require a specific example as an illustration.
We would like nothing more than for you to have a quality new or used car every two, three or four years. tmc vehicle solutions is the market leader for all kinds of vehicle contracting, finance and acquisition. We can offer you an easy, convenient and economical way to purchase and run your next car.
Our facilities are flexible in ways that are unique to any other purchasing method currently available to both the corporate or private individual.

Our approach is completely different. We know that to operate a car of any sort represents a perpetual cost and continued expense.

Many people do not want to subject themselves to the "hard sell" and awkward and often intimidating questioning experienced in today's vehicle showrooms. Most of us do not have time to scour our locality searching for the elusive "best deal" trying to ensure that we secure value for our hard earned money.

TMC Vehicle Solutions Ltd can offer you the best solution.

All you have to do is consider what your exact requirements are and what sort of levels of service and facilities you think you will need. The following steps may help you to understand what you need to know before you contact tmc vehicle solutions for a quotation.

1. Do you want a new or quality used car?
2. Decide what make and model of car would you like and what options and extras you might like to have fitted to the car?
3. Decide what period of time you would like to operate the car over? If you are a low mileage user then you might consider a longer period, your annual mileage will have an effect on how much you pay per month so try and estimate what it might be before you call us.
4. We will ask you what level of deposit amount you would prefer; this can be any amount, the minimum being 10% of the vehicle's actual purchase price.