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Hire Purchase Products

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These agreements give you the ability to own the machine at the end of the term upon payment of a £40 + VAT Option to Purchase fee. There is also an acceptance fee payable at the start of the agreement which varies depending on the amount financed.

Click on the product types below to expand information about them.

hp variable

A variable rate HP agreement - fixed equal monthly repayments of capital with interest calculated daily. Popular when interest rates are expected to fall or you expect to settle the entire agreement early or pay off lump sums.

A variable rate Hire Purchase agreement with fixed equal monthly repayment of capital. Interest is calculated daily, at an agreed percentage over Finance House Base Rate (or another mutually agreeable base rate), and is repayable monthly or quarterly. This is the Hire Purchase option to pick if you expect interest rates to fall during the period of the agreement. It is also possible to settle the entire agreement early and only pay interest up to the date of settlement or pay off lump sums and further reduce the overall interest charges. The machine becomes yours once the payments of capital and interest have been made.

Benefits:

  • Fixed repayments of capital
  • Interest payments can be made monthly or quarterly
  • Enjoy savings when interest rates fall
  • No additional costs for early settlements
  • Ability to pay off lump sums
  • VAT fully reclaimable
  • Tax writing down allowance available including the Annual Investment Allowance
  • Interest charges are tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements
Contact us about this product

hp plus

A variation on traditional fixed rate HP which combines the best features of both fixed and variable rates plus offers the ability to take payment holidays with the Take a Break option.
Watch our short video to learn more of the features and benefits of HP Plus

HP PLUS has fixed equal monthly repayments of capital and estimated interest. Particularly appropriate if early settlement is expected or there is the possibility of lump sums being paid off during the agreement term. Both are possible and extra savings would become available because the interest is calculated daily on the remaining balance. Any lump sums paid during the agreement would consequently shorten the repayment period - fix the payment and float the period. The actual interest rate is based upon a negotiated percentage rate at the start of the agreement. When the Take a Break option is selected this agreement becomes even more flexible because, by giving us 15 days’ notice, you can select the months (a single month or two consecutive months) where you would like to have an “unplanned” payment holiday. You can do this once in each year for a total of 6 months payment holidays during a three, four or five year agreement. If you take a payment holiday, we will simply extend the period of the agreement, calculating the cost of the holiday using the original interest rate. The payment amounts will not change, but the period will be lengthened as appropriate and the final payment may need to be adjusted up or down slightly to balance the account. Typically, such an agreement will cost little more than a normal fixed rate hire purchase agreement over the same term. What you get in addition with Take a Break, is the extra peace of mind and flexibility, so when the pressure is on, you can relax knowing that you and your finances can take time out exactly when you need it.

Benefits:

  • Interest rate agreed and fixed at time of documentation
  • Fixed repayments of capital and interest
  • Hedge against inflation and interest rate rises
  • Accurate budgeting
  • Allows for unplanned payment holidays
  • No monthly/quarterly interest bills
  • No additional cost for early settlement
  • Ability to pay off lump sums
  • VAT fully reclaimable
  • Tax writing down allowances available including the Annual Investment Allowance
  • Interest charges are tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements
Contact us about this product

hp fixed

Our most popular Hire Purchase option, offering accurate budgeting and the security of fixed repayments that protect against rising interest rates.

Our fixed rate Hire Purchase offers all the benefits of ownership without the initial capital outlay. Payments, made up of capital and fixed interest, may be repaid by monthly, quarterly, half-yearly or annual payments and are fixed for the full period of the agreement. It is possible to design a bespoke repayment pattern that matches your business’ income and expenditure cycles. You can ask for a number of different repayment options which will be shown to you ‘at the touch of a button’. HP Fixed is our most popular option, offering the security of fixed repayments that can act as a hedge against inflation and rising interest rates. The machine becomes yours once all the payments have been made.

Benefits:

  • Interest rate agreed and fixed at time of documentation
  • Fixed repayments of capital and interest
  • Accurate budgeting
  • Hedge against inflation and interest rate rises
  • VAT fully reclaimable
  • Tax writing down allowances available including the Annual Investment Allowance
  • Interest charges are tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements
Contact us about this product

hp equalised payments

Another variable rate Hire Purchase agreement but budgeting is made easier because of the fixed equal monthly repayments of capital and estimated interest.

Another variable rate Hire Purchase agreement but budgeting is made easier because of the fixed equal monthly repayments of capital and estimated interest. Actual interest is calculated daily, based upon Finance Houses Base Rate or another mutually agreeable base rate. Any movement in the chosen base rate is used to reflect either the shortening or lengthening of the repayment period - hence we describe it as fix the payment and float the period.

Benefits:

  • Fixed repayments of capital and interest
  • Enjoy savings when interest rates fall
  • Accurate budgeting
  • No monthly/quarterly interest bills
  • No additional costs for early settlements
  • Ability to pay off lump sums
  • VAT fully reclaimable
  • Tax writing down allowance available including the Annual Investment Allowance
  • Interest charges are 100% tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements
Contact us about this product

letter of agency

Allows “cash buyer” negotiating power or where you do not want to reveal to your supplier that you use an external source of finance. The amount borrowed is then usually paid back over a pre-agreed period in the form of a Hire Purchase agreement.

Letter of Agency

This allows you to negotiate your own purchase as a “cash buyer” but without committing your capital over a long term. After the transaction we reimburse you with a pre-agreed sum against the receipted invoice to release your capital. The amount that you owe us is then usually paid back over a pre-agreed period in the form of a Hire Purchase agreement.

Benefits:

  • You gain “cash buyer” negotiating power
  • You have sole contact with the dealer
  • Confidentiality is absolute
  • Other benefits as per Hire Purchase
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contract purchase

Very much like Personal Contract Purchase on a car, this fixed rate Hire Purchase agreement has lower than usual repayments because of the final balloon payment. At the end there are three options to either keep the machine, trade it in against a replacement or return it.

A fixed rate Hire Purchase agreement with lower than usual repayments because of the final balloon payment. In effect this balloon payment represents a significant proportion of the capital that remains unpaid until the end of the agreement. The end of term balloon payment is deliberately set below the estimate of the machine’s future trade value so that this final payment is more affordable whilst making it easier to select a number of flexible options:

  • Keep the machine: Pay off the balloon and keep the machine.
  • Replace the machine: Trade-in old machine, trade-in allowance should pay balloon with any surplus being used as a deposit on the replacement.
  • Return the machine: Return the machine to JCB Finance who will take care of the balloon payment at no extra cost*. Offers protection against any unexpected fall in used machine prices.

*Subject to the machine being returned in an acceptable condition as set out in the addendum and with hourage within the original contracted hourage band. Excess hourage will be charged at a cost per hour figure as stipulated in the agreement.

Benefits:

  • Interest rate agreed and fixed at time of documentation
  • Hedge against inflation and interest rate rises.
  • Low fixed payments
  • Accurate budgeting
  • Flexible end of term options
  • VAT fully reclaimable
  • Tax writing down allowances available including the Annual Investment Allowance
  • Interest charges are tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements
Contact us about this product

Recently Added Case Studies

  • Fixed finance rate proves perfect for farm park
  • HP Fixed
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  • 20 years of flexible finance supports hire company to set up and grow
  • HP Plus
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