preload

Lease Purchase

Lease Purchase is for people who would like to own a vehicle but do not necessarily have the money to buy one immediately

Lease Purchase is for people who would like to own a vehicle but do not necessarily have the money to buy one immediately. It is ideal for non VAT registered customers who eventually wish to take ownership. It is a flexible product and it is possible to put down a larger initial payment, which in turn reduces your monthly payments. The monthly cost is worked out on the difference between the retail value and the depreciation value plus interest. The main difference between Lease Purchase and Contract Purchase is that instead of having the choice at the end of the contract to purchase the vehicle, which you would have with Contract Purchase, you have already entered into a contract to purchase the vehicle at the end of the contract with Lease Purchase. This contract is only for those who are absolutely sure that they want to take ownership of the vehicle at the end of the contractual period, and pay any balloon payments associated with the contract. Lease Purchase agreements typically run between 24 and 60 months, although the agreement can be settled at any time.

Advantages:

  • Low initial payment
  • Fixed mileage contract
  • Ideal for non-VAT registered customers who want eventual ownership of the vehicle
  • Effective budgeting with balloon facility, ownership of the vehicle is acquired once the balloon has been paid
  • Monthly payments are not subject to VAT
  • The vehicle is a company asset for balance sheet purposes
  • Lease Purchase frees up your capital for other business uses

Disadvantages:

  • The balloon payment must be paid for at the end of the contract
  • The vehicle is yours once you have paid the balloon payment. In some cases the balloon can be higher than its value at the end of the contract
  • You must have fully comprehensive vehicle insurance

More Information on Lease Purchase:

It is a flexible product and it is possible to put down a larger initial payment, which has the advantage of reducing the monthly payments. The monthly cost is worked out on the difference between the retail value and the depreciation value plus interest. This means that choosing Lease Purchase for a vehicle which holds its value will work out in your favour.

The main difference between Lease Purchase and Contract Purchase is that instead of having the choice at the end of the contract to purchase the vehicle, which you would have with Contract Purchase, you have already entered into a contract to purchase the vehicle at the end of the contract with Lease Purchase.

This contract is only for those who are absolutely sure that they want to take ownership of the vehicle at the end of the contractual period, and pay any balloon payments attached to the contract. Lease Purchase agreements typically last between 2 and 4 years although the agreement can be settled at any time throughout the contract.

Have a question about Lease Purchase?

Call: 0121 45 45 645
Email: info@nationalfleetservices.co.uk
Alternatively use our contact form.


National Fleet Services Limited is authorised and regulated by the Finance Conduct Authority.

National Fleet Services Limited can introduce you to a number of finance providers, we receive a remuneration if you enter into an agreement with them.

National Fleet Services Limited is a credit broker and not a lender.

BVRLA Registration Number: 1463 | Financial Conduct Authority Licence Number: 680691

Company Registration Number: 03247145 | ICO Registration Number: Z5088418 | VAT Registration Number: 695548379

Registered Office: 5 The Croft, Buntsford Drive, Bromsgrove, B60 4JE

Fleet Management | T&C | Leasing Offers | Complaints | Driver Licence Checking | Commission Disclosure | Products & Services | About Our Services | Whole Life Cost | Login