The option of a fixed or variable interest rate
With BMW Hire Purchase, you can spread your car payments over a period that suits you. This means you get the car you want, while your business gets to invest more of its funds where they are needed most.
You can choose either a fixed or variable rate agreement. If you choose a variable rate, you have two options - 'Base Rate' or 'Balanced Payments'.
Rate Options
Fixed interest rate option
With our fixed interest rate option, your interest rate remains fixed at a pre-determined rate for the whole term of your agreement.
Variable interest rate options
If you feel a variable interest rate would be more of an advantage to your business and its requirements, there are two options available:
Base Rate
If you choose this option, the interest rate applied to the agreement is adjusted up or down according to changes in the 'Finance House Base Rate'.
So while the interest element of your regular repayments is liable to fluctuate, your business' capital repayments remain constant throughout the agreement.
Balanced Payments
With this option your repayments are calculated on an estimate of future interest rates (the Notional Base Rate) and are fixed throughout the agreement.
At the end of the agreement, if average interest rates have been lower than the Notional Base Rate, your business will receive a refund. If they've been higher, your business will need to make an additional payment.
How your business benefits
BMW Hire Purchase is a simple and straightforward way to spread the cost of your new BMW over an agreed period of time.
•At the end of the agreement, provided you've made all the necessary payments, your business owns the BMW.
•The option of a fixed interest rate agreement helps make budgeting easier.
•Your business commits less money up front, which eases cash flow and frees up funds for investment elsewhere in the business.
•The car is classified as an asset on your balance sheet, so a proportion of its value can be written down against profits.
•The interest your business pays is allowable against tax.
How it works
A step by step guide to the most straightforward way to finance a BMW for your business.
1.Decide on the BMW you want.
2.Choose the repayment period that's right for your business.
3.Choose whether you would like a fixed or variable interest rate.
4.If you opt for a variable rate, your business can choose between a 'Base Rate' or 'Balanced Payments' agreement.
5.The business agrees a deposit to suit its budget.
6.At the end of the agreement, provided all the necessary payments have been paid, your business owns the BMW.
7.If you have opted for a 'Balanced Payments' variable rate agreement, at the end of the agreement you may receive a refund or be required to make an additional payment, depending on average interest rates during the term of the agreement.
