Home > finance > finance for business > lease purchase

Lease Purchase

Lease Purchase

This is a popular method of funding for many of our customers. It is designed to provide fixed term funding and you own the vehicle at the end.

You decide the initial lump sum deposit and the repayment period. You then pay monthly payments for the life of the agreement. Assuming all outstanding payments have been made, you own the vehicle at the end of the agreement.

Features and Benefits

  • No VAT on payments
  • Vehicles are treated as an asset and appear on your balance sheet - writing down allowances can be offset against taxable profits along with interest charges
Initial Outlay Usually 10% of vehicle price
Contract Length Decided by you
Monthly Costs Fixed
Final Lump Sum Payment No
Depreciation Risk Normal
Ability To Take Profit On Sale Yes
Eventual Ownership Yes