Fleet Hire Purchase Calculator

Hire purchase is one of the most widely used finance structures for commercial vehicle fleets in the UK. Under HP, the finance company purchases the vehicle and you make fixed monthly repayments over an agreed term, typically 24 to 84 months. At the end of the agreement, ownership of the vehicle passes to your business automatically, often for a nominal option-to-purchase fee. This makes HP particularly well-suited to fleet operators who prefer to own their vehicles outright at the end of the term and want predictable fixed monthly costs with no mileage restrictions.

The key distinction between HP and finance lease for fleet operators comes down to ownership and balance sheet treatment. Under HP, the vehicle appears on your balance sheet as an asset from day one, with the corresponding finance liability. Depreciation and interest are treated separately for accounting purposes. Under a finance lease, the lender retains title to the vehicle throughout the agreement; depending on the lease structure, it may or may not appear on your balance sheet under IFRS 16. For operators who want ownership at the end, HP is typically the more straightforward choice. For those prioritising cashflow flexibility and the ability to return or exchange vehicles, finance lease often offers a better fit.

Lenders assessing fleet HP applications will typically look at business trading history, credit score, asset type, loan-to-value ratio, and the strength of the balance sheet. Established operators with clean credit and a track record of commercial vehicle finance will usually access the most competitive rates. Newer businesses or those with adverse credit may be asked to provide a larger deposit or accept slightly higher rates. Working with an independent broker like Sorbus Finance means your application is assessed against 100+ specialist commercial vehicle lenders, ensuring you access the most appropriate rate for your specific credit profile and fleet requirements.