We estimate that around a third of our customers outright purchase their vehicles. Some are just cash rich and don’t want to incur interest charges. When Bank of England base rate was next to nothing then it was less of an issue but now interest costs are a large factor.
Others might be an owner driver business and they can afford the MD’s pick-up truck anyway every three years as they don’t have that many vehicles.
More likely are that some are also arranging their own finance or bank facilities. We don’t mind at all. We took a view not to profit from finance commission anyway so for us we just want you to find what works best for you. If you have a facility with JCB Finance then stick with it. Bear in mind that we can just invoice your funder directly if that helps so you don’t have to pay for the vehicle and then get the money back.
Genuine outright purchase is a quick way to get a vehicle delivered as there is less faffing about with credit lines and documents. Costs are minimised as no interest or admin charges. Disposal is easy as no being encumbered with financial interest from lenders. You can claim any capital allowances as well, as you can with hire purchase.
One less well-known point is that some manufacturers give more discount on the vehicle if it is leased rather than outright purchased. That’s because they don’t want to be seen to be discounting heavily and leasing hides the vehicle price. We actually offer a 12 month 0% finance lease contract on some vehicles just so we can access the higher discount. It has a 50% deposit, and the vehicle has to be kept for a year, but you are the first registered keeper. Just ask us
