Lease Purchase

This option will be of particular interest to companies not registered for VAT who want eventual ownership of the vehicle(s). It is effectively Hire Purchase with a leasing payment pattern.

How Does It Work?

Using our fleet purchasing power, we source the vehicle(s) of your choice and deliver free of charge. You will previously have agreed a contract term, annual mileage, monthly rental and a mutually acceptable option-to-purchase price, which, at the end of the contract, gives you ownership of the vehicle (this is often referred to as a ‘balloon’ payment). Alternatively you can ask us to sell the vehicle, with the sale proceeds being offset against the option-to-purchase price. If it exceeds that price, you receive the surplus cash benefit.

What Else Can Be Included?

• Routine servicing, mechanical repairs, batteries, exhausts and tyres
• Replacement vehicle in the event of an accident or breakdown
• Full membership of a motoring emergency programme, including Home Start, Road Side Assistance, Relay, Relay Plus and European Cover
• Individual or fleet insurance cover
• Full range of competitive insurance products

The Benefits

• Minimal initial expenditure (typically 3 months in advance)
• Fixed monthly payments for accurate budgeting
• VAT on monthly payments not applicable
• Option to purchase at end of contract
• Flexibility of structuring the option-to-purchase price or residual value
• Vehicle shows as an asset on your balance sheet

Disadvantages

• Vehicle depreciation is your responsibility
• Limited tax benefits

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