Taking Hire Purchase And Increasing The Flexibility To Suit Your Needs
Lease Purchase takes the concept and benefits of Hire Purchase and adds the flexibility of an optional deferred large sum (balloon) payment. This deferred lump sum can reduce your monthly payment, or reduce your contact length.
What Are The Benefits?
Fixed monthly rentals for ease of budgeting
Monthly payments are not subject to VAT
No mileage restrictions
Option to include a deferred sum / final 'balloon' payment to keep monthly payments low
Taxation benefit from writing down allowance
LCV's acquired on Lease Purchase should be eligible for the Annual Investment Allowance
LCV's acquired on Lease Purchase are required to pay VAT upfront as a lump sum
How Does It Work?
You pay an initial deposit followed by a fixed number of monthly payments over an agreed contract period.
Monthly payments can be reduced by making a 'balloon' payment at the end of the agreement.
The amount of the 'balloon' payment has to be settled at the beginning of the contract.