At CoolKit we offer Hire Purchase (HP) Agreement as a method of financing your fridge van.
A HP Agreement is probably one of the most common ways of funding a vehicle purchase. It is normally a fixed cost, fixed period loan of money linked or secured to the purchase of a vehicle.
As the customer you would decide how much of an initial deposit to put down (usually all the VAT and 10% of the vehicle price) and then pay off the amount borrowed, known as the balance, plus the interest in monthly instalments over an agreed period of time. There is usually an arrangement fee charged by the lender and any fees can be included as part of the regular repayments. The fee amount is set by the individual lender and will be clearly disclosed on all documentation.
At the end of the period, and once the Option to Purchase fee has been paid, title to the vehicle is transferred to the customer who then becomes the legal owner. An HP Agreement can be settled at any time by the customer by paying the balance of finance outstanding and Option to Purchase fee to the lender.
At CoolKit we also offer a Finance Lease option, a form of flexible leasing to fund the use, but not the ownership, of a vehicle, ideally suited for VAT registered businesses.
The leasing company effectively hires the vehicle to the customer for an agreed period of time for an agreed monthly sum. The customer agrees to make regular rentals to the leasing company and must keep the vehicle fully insured and in roadworthy condition. Deposits are not taken under a Finance Lease. However, advance rentals are usually paid at the start of the agreement with the exact amounts agreed by the lessor and lessee. Finance lease agreements usually range from 2 to 5 years and there are no mileage restrictions.
A Finance Lease can be settled at any point during the term. However, penalties for doing so can often be high and will be detailed by the lessor in the terms and conditions of the agreement.
At the end of the primary period of agreement, the customer has 3 options:
“After nearly 200,000 miles and two years of hard use, my CoolKit fridge vans still look like new, endorsing their claim that they are robust and durable”Paul Gould, ICEOTEMP Temperature Controlled Distribution