Lease Purchase

Lease Purchase can be applied to either the private individual or the business user. Lease Purchase is commonly confused with leasing which is a different product all together. It is an ideal way of funding a prestige vehicle for a low monthly payment, or, indeed to fund a mini fleet if your company is not VAT registered. The term can range from one to five years.
With a Lease Purchase agreement the rate is fixed at the beginning and will not change. At the beginning of the agreement you will be asked what sort of deposit you would like to put down. This can range from three months up front right up to 40% of the total amount of the vehicle. At the end of the term there is a final payment to be made. This is the anticipated value of the vehicle that was given at the beginning of the agreement. You can either pay the residual value and own the vehicle outright or pay the outstanding balance and use the balance as a deposit.

A Finance Product for Non V.A.T Registered Companies that prefer eventual ownership of their vehicles.

These agreements allow for the company to acquire ownership when all payments including the optional "Balloon" payments have been made. The disposal and residual value risks remain with you.

* Low Initial Payments
* Improved Cash Flow
* Capital Allowances available
* Ownership of Vehicle