struggling to decide between contract and hire purchase.
If I go via HP I can get the 35k interest free loan. If I add another 10k to the deposit monthly cost comes in at around £1300. I work as a sole trader so would get roughly £400 a month as a tax break bringing cost to around £900. That would be my absolute limit. The advantage is that interest costs would be around 6k and at the end I would own the vehicle.
Contract purchase with a 10k deposit and the above tax break brings cost down to £720 a month. That feels like a more comfortable number but interest payments over the same 4 year period is 15k and there is a large balloon payment at the end.
Apart from monthly cost HP looks like a better option. Anyone’s advice of experience of either option would be early appreciated.
Cheers
If I go via HP I can get the 35k interest free loan. If I add another 10k to the deposit monthly cost comes in at around £1300. I work as a sole trader so would get roughly £400 a month as a tax break bringing cost to around £900. That would be my absolute limit. The advantage is that interest costs would be around 6k and at the end I would own the vehicle.
Contract purchase with a 10k deposit and the above tax break brings cost down to £720 a month. That feels like a more comfortable number but interest payments over the same 4 year period is 15k and there is a large balloon payment at the end.
Apart from monthly cost HP looks like a better option. Anyone’s advice of experience of either option would be early appreciated.
Cheers
