The Taxi Shop has relationships with various Funders and Brokers, providing our customers with flexible, affordable credit agreements. We offer three types of funding for those wanting to purchase a new vehicle and those are Hire Purchase, Lease Purchase and Personal Loan.
Hire Purchase (commonly referred to as ‘HP’) is our most popular method of purchase and is very simple. Hire purchase consists of straightforward monthly repayments over an arranged term and on making your last payment or early settlement, you own the vehicle.
Lease purchase is a great way to achieve lower monthly payments when compared to HP and commonly consists of monthly repayments over an agreed term, with a balloon payment at the end of the agreement. Lease purchase is not to be confused with PCP where you are able in most cases to return the car to the Lender. As your vehicle will be used as a taxi, it is difficult for anyone to predict the mileage that vehicle may cover over the term of the finance agreement, therefore its value at the point the agreement is coming to an end is also unknown to the Lender at point of purchase. So, when you opt to take a lease purchase deal, you are responsible for making your monthly repayments as well as the repayment of the balloon payment at the end of the agreement. Paying off the balloon at the end of the agreement might not be an option for some, leaving you to either sell the vehicle and make the payment, or part exchange the vehicle using any equity as deposit on your new purchase.
A personal loan, another form of instalment credit is another reasonably simple option but is the least common when buying a new vehicle. This option consists of a cash loan, paid to the Dealer which is often secured against the vehicle you are buying. You then repay the loan monthly with interest over an agreed term until the loan is repaid and you would then own the vehicle. Personal loans don’t always offer the same options as other types of credit and are generally reserved as a lending option for customers who can not obtain HP or Lease Purchase. Our go to products that are best suited for most applicants is Hire Purchase or Lease Purchase.
We also arrange credit for larger operators via their limited company with various options including the above as well as larger credit facilities such as credit lines that can be drawn down from as and when it is required. On page six, you can see some representative examples of the above types of finance, based on the up-to-date prices of our brand-new Renault Trafic Minibuses.
*Not all credit agreements are the same and credit is subject to status. Lenders may impose special terms and conditions on a case-by-case basis and the above should be viewed as a general guide only. Always consult your Lender or Broker before committing to any credit agreement if you are unsure or unhappy with its terms.
