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info@firstvehiclefinance.co.uk

Lease purchase


Lease Purchase is for people who would like to own a vehicle but do not necessarily have the money to buy one immediately


Lease Purchase is another type of vehicle finance which is ideal for non VAT registered customers who eventually wish to take ownership

Advantages:

  • Low initial payment 
  • Fixed mileage contract 
  • Ideal for non-VAT registered customers who want eventual ownership of the vehicle 
  • Effective budgeting with balloon facility, ownership of the vehicle is acquired once the balloon has been paid in full at the end of the contract 
  • Monthly payments are not subject to VAT 
  • The vehicle will become a company asset 
  • Lease Purchase frees up finance for other aspects of your company 
  • The vehicle will appear on your balance sheet and you can record the value against taxable profits 


Disadvantages:

  • The balloon payment must be paid for at the end of the contract 
  • The vehicle is yours once you have paid the balloon payment. In some cases the balloon can be higher than the residual value 
  • Dedicated funding product, which does not include maintenance or any other value added services 
  • You must have fully comprehensive vehicle insurance 


More Information on Lease Purchase:

It is a flexible product and it is possible to put down a larger initial payment, which has the advantage of reducing the monthly payments. The monthly cost is worked out on the difference between the retail value and the depreciation value plus interest. This means that choosing Lease Purchase for a vehicle which holds its value will work out in your favour. 

The main difference between Lease Purchase and Contract Purchase is that instead of having the choice at the end of the contract to purchase the vehicle, which you would have with Contract Purchase, you have already entered into a contract to purchase the vehicle at the end of the contract with Lease Purchase. 

This contract is only for those who are absolutely sure that they want to take ownership of the vehicle at the end of the contractual period, and pay any balloon payments attached to the contract. Lease Purchase agreements typically last between 2 and 4 years although the agreement can be settled at any time throughout the contract.

Need a vehicle? Don’t have the money?

We offer lease purchase in UK that is perfect for people who need vehicles but don’t really have the money to make upfront payments. Our plans feature low deposits and fixed monthly payments for all our clients. We also offer business contract purchase services to a variety of different companies.

Contact us

Email : info@firstvehiclefinance.co.uk

Telephone : 01293 456 100

Company Address :
First Vehicle Finance Limited
Brockham House
Smallfield Road
Horley
Surrey
RH6 9AU

First Vehicle Finance Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 669990

Registered in England & Wales with company number : 05285260 | Data Protection No : Z9729803 | VAT No : 862 3889 84

Registered Office : The Cottage, 2 Castlefield Road, Reigate Surrey RH2 0SH

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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