JCB Finance offers Hire Purchase with Variable Rates allowing you to benefit from low-interest rates. Find out more. UK Businesses Only. Terms apply.

hp variable

HP Variable is a Hire Purchase product that is a way of spreading the cost of buying JCBs, plant, equipment and vehicles with regular payments of the capital balance borrowed (at a profile to match your business needs), and separate invoices and collection for the interest payable on the reducing balance.

The interest rate is at an agreed percentage over a base rate and is invoiced and collected monthly or quarterly (whichever is your preference). As the interest is calculated daily on the balance outstanding, it may be a cost-effective option if you are likely to settle the agreement early because you will only be charged interest for the amount borrowed for the duration of the borrowing.

 

The interest rate applied will go up or down depending on changes in the underlying base rate, so an attractive option if you believe that interest rates will go down after your agreement has started.

 

HP Variable offers an advantage if you believe rates will go down but if you believe they may go up, you may wish to consider the HP Plus facility which has similar cost savings if you settle the agreement early but interest is calculated at a fixed rate so you are protected against base rate increases.

 

Payments can be monthly, quarterly, annually or a bespoke schedule to match your business needs.

 

Ownership of the goods will be yours when you have made all payments including an Option to Purchase Fee.

 

VAT relating to the purchase price is usually payable at the start of the agreement and is usually reclaimable. Tax relief may be available, including the Annual Investment Allowance or Corporation Tax full-expensing relief.

 

The typical duration 1 year to 5 years, borrowing over £5,000.

 

Goods may be repossessed if you do not keep up with repayments.

 

HP Variable is not available on regulated credit agreements (i.e. if you are a sole trader or partnership with 3 or less, borrowing up to £25,000).

 

What happens at the end?

You pay a nominal option-to-purchase fee at the end of the agreement, and ownership transfers to you. 

 

How to apply
Call us on 0800 150650
and speak to one of our Relationship Managers. Open Monday to Friday 8.30am to 4.45pm, excluding Bank Holidays. See How to apply for finance page for more details.

 

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Disclaimer

Finance provided and subject to acceptance by JCB Finance Ltd (Registered in England No.972265 Registered Office: The Mill, Rocester, Staffordshire, ST14 5JW) who are registered with the Financial Conduct Authority as a lender. UK business users only. Terms apply. Subject to your consent, JCB Finance Ltd will pay a commission to the UK JCB dealer network which is a flat fee plus basic rate tax and employer National Insurance contributions for each JCB machine on the finance agreement. These payments are not additional fees that you will have to pay and is not added to the amount you pay under your finance agreement. Other products are available see JCB Finance Finance Options Explained

 

FAQs

What base rate is used?

JCB Finance use the NatWest base rate on variable rate agreements.

 

What if the base rate changes?

Your capital payments will remain the same but the interest rate applied will go up if the underlying base rate goes up and down if the base rate goes down.

 

Can I make changes once the agreement has started?

Some changes are possible e.g. changing monthly payment date. Fees and/or additional interest charges may apply if you wish to make a change after the agreement has started.

 

Can I end early?

If you wish to settle your agreement early you can request a quote via your JCB Finance Online account or email settlements@jcb-finance.co.uk or call 0800 150650.

 

What are the fees?

HP Variable has an acceptance fee, payable with the first payment after the agreement has started and an Option To Purchase fee payable with your final payment. These are documented from the outset.

 

Do I have a lump sum to pay at the end?

You may choose to have a final lump sum ‘balloon’ repayment – this would reduce the amount you pay in your regular payments, but the balloon must be paid by you in full when it is due. The amount due would feature on your quotation and documented on your agreement from the outset. Having a balloon is likely to result in you paying more interest so speak to JCB Finance for details.

 

What if my circumstances change?

Contact the Customer Services Team on 01889 594101 or customerservices@jcb-finance.co.uk who will be happy to assist you and discuss what options are available. Open Monday to Friday, 8.30am to 4.45pm (excluding Bank Holidays).

 

What if I want to sell the goods?

You cannot sell (or pass title) to any goods until you are the legal owner. When all payments have been made, including the Option To Purchase Fee stipulated on your agreement you have ownership of the goods.

If you wish to settle your agreement early you can request a quote via your JCB Finance Online account or email settlements@jcb-finance.co.uk or call 0800 150650.

 

What happens at the end?

You pay a nominal option-to-purchase fee at the end of the agreement, and ownership transfers to you.

 

What about insurance?

You have a duty under the agreement to insure the goods on a comprehensive basis.

Call us now On 0800 150650 For more info Or alternatively