Lease Purchase / Hire purchase Used by companies who require definite eventual ownership of the vehicle. The customer acquires the vehicle when all the payments, including an option to purchase payment, have been made. Part of the capital cost of the vehicle payment may be deferred into a 'balloon' or residual payment at the end of the agreement (Lease Purchase), which equates to the anticipated value of the vehicle at the end of the agreed loan period. Highlights: - Low deposit (usually equivalent to three monthly payments or 5-10% of the capital cost of the vehicle)
- No VAT involved
- Writing down tax allowances apply
- 12-60 month contracts
- Any vehicle - new or used
- Eventual ownership
- No mileage restrictions (although the purchaser will ultimately pay for the full depreciation of the vehicle while in his possession)
|
