It has been two years and the business has been running smoothly and is successful. In order to buy two more vehicles you would need to search and find ways of financing. A way to purchase the two cars is to going into a Smart showroom and asking about their finance deals. There are different options when it comes down to financing a vehicle. One type of financing is Hire Purchase. This is where you pay a deposit for the vehicles and then pay a monthly fee with interest for a certain time period. The most advisable is to go for the 36 month contract. If the car is worth £12,000, the depreciation percentage value of the vehicle will be calculated and deducted off the original price. So if the car value is worth £8000 in 36 months time, you will only be paying that amount plus a standard rate interest which is 6.0%. Once the 36 months are up you have the choice of either giving back the car (which not many people do) or pay off the remaining amount. [ (BEANCOUNTER, 2011) ] There are two ways to pay off the remaining amount. One way is to pay it all at once without any interest. Another way is to finance the remaining amount for 24 months and paying interest again but at the end of the day the car is yours and becomes an asset.
You can check the latest offers on the vehicles on the following website: * http://www.smarttogo.co.uk/
* Visit a Showroom in Watford
Sales and Aftersales
Colne Bridge Retail Park
Lower High Street
BEANCOUNTER. accounting. 2nd edition. ed. watford: john smith, v. 5678, 2011.