Hire purchase

How to finance - Hire purchase

Enjoy the balance sheet benefits of economic ownership of the vehicle. You can also choose between a fixed or variable interest rate, whichever suits your business. When all payments have been made, you own the vehicle. Full VAT is payable with the initial deposit payment.

Main characteristics of hire purchase

  • The vehicle is treated as “on balance sheet” 
  • PACCAR Financial has legal title to the vehicle until all instalments and final option fee have been paid, after which the customer takes final ownership. 
  • Choice of fixed or variable interest rate 
  • Fixed monthly payments throughout can include seasonal payment schedules or even a balloon payment at the end of the contract, to lower the monthly costs.

Main benefits of hire purchase 
  • The mutually agreed deposit will include the full VAT on the cost of the vehicle which is reclaimable by you. 
  • You can claim writing down capital allowances, reducing your tax bill. 
  • You can offset interest element of monthly payment against taxable profit. 
  • You enjoy 100% of the benefits of the asset value and it is on the balance sheet. 
  • Known cash flow with repayments not subject to VAT. 
  • Product can be tailored to your operating environment by structuring the payments to your specific requirements.

Go to your local PACCAR Financial website

PACCAR Financial

The financial products that PACCAR Financial offers depend very much on your country. In several European countries we have Regional Business Managers who look forward to discuss the financing possibilities with you.

Services that back-up PACCAR Financial

MultiSupport - Repair and Maintenance


PACCAR Financial can roll your repair and maintenance costs into your lease contract, as well as include other services, such as the insurance for your truck, GAP insurance, road tax and toll vignettes.

Read more

PacLease - short and long term rental


Flexibility is key to cost efficient management of your transport needs. PacLease offers to the market highest quality trucks and trailers, ready for immediate short and long term rental.   

Read more

Contact PACCAR Financial headquarters


The professionals at PACCAR Financial can help you make the right decisions. Find out how PACCAR Financial can help you today.

Contact PACCAR Financial

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