Hire Purchase

The most common way to finance machinery.

How does it work?

You decide what equipment to buy, negotiate the sale with the dealer and then sign an HP agreement to repay the capital and interest to AGCO FINANCE. The dealer's invoice is settled promptly by AGCO FINANCE and when the final instalment is paid the equipment belongs to you.

What about the VAT?

Normally the VAT is payable to AGCO FINANCE at the outset. If there is a part exchange involved in the deal then only the VAT difference is payable. There is no VAT payable on individual repayments.

Who gets the tax benefits?

Capital allowances are claimed just as if you had paid cash for the equipment at the outset. No tax benefits are available to AGCO FINANCE.

Will the payments change?

The interest is normally fixed at the outset of the agreement.

Can the payments be tailored to my cashflow?

Of course! It may be important to consider the best time of year to make repayments and AGCO FINANCE will be pleased to discuss the repayment profile that will best match your income.

If I've got a question who can help me?

Firstly call your local AGCO FINANCE Area Manager who will be able to answer most questions on your agreements, give you an immediate quotation or even come and visit you to talk through any issues. If you can't get through to your local manager, then call our national helpline on +44 2476 851831 or email us at sales@agcofinance.biz and we will try and answer your question quickly and constructively.

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