Lease Purchasing is an ideal alternative to borrowing from the bank for businesses that are not VAT registered or who wish to eventually take ownership of their cars.
Benefits of lease purchase:
- Eventual ownership of your car
- Initial deposit is low
- The vehicle can be written into your books
- All interest paid can be off-set against tax
- No VAT on payments
- Option to take early settlement
- Zero mileage restriction
- Lease Purchasing is simply a funding scheme that favours businesses that prefer a minimum payment scheme to assist with cash flow.
- Part of the capital cost is deferred until the end of the agreement and has the obvious effect of reducing the monthly payments.
- When you pay the final balloon payment you complete the agreement and the car is yours to keep.
- If you trade the car in for another vehicle, any allowance over and above the balloon payment is yours and can be put towards a deposit on your next vehicle.
- And if the allowance is less than the balloon, you will then be responsible for the shortfall.
If you would like more assistance or would like to discuss any financing options available to you please call any member of our team on 01472 358 625.