Lease purchase, a product very similar to hire purchase, is a more conventional funding facility that has been “outshone” in some respects by more recent products such as contract purchase or personal contract purchase. Nevertheless, traditional lease purchase / hire purchase has a number of strong advantages for customers.
Lease Purchase is a dedicated funding product that does not include maintenance or any other value added services. The customer is liable for the full value of the vehicle and has no option to return it at the end of the contract.Key benefits:
- Ideal for non-VAT registered companies that require ownership of the vehicle at the end of term
- Effective budgeting with balloon facility.
- Ownership of the vehicle can be acquired once the balloon has been paid in full
- Monthly payments are not subject to VAT
- The vehicle is registered in the name of the customer, and where this is a company, the vehicle will appear on the balance sheet and writing-down allowances can be claimed
Should the agreement be for an LCV (light commercial vehicle), then the full amount for the VAT on the purchase must be paid upfront by the customer. This is a reclaimable payment providing you are a VAT registered business
For more information or to discuss your circumstances please get in touch on 01825 720900 or firstname.lastname@example.org