- Contract Hire
- What is Contract Hire?
- Contract Purchase
- Lease Purchase
- Finance Lease
- Contract Options
Car Lease Purchase
What is Lease Purchase?
Lease Purchase is an agreement where ownership of the car is transferred to the customer at end of the contract, subject to all terms and conditions of purchase being fulfilled.
Lease Purchase monthly instalments are calculated taking into consideration cost of the car, initial deposit amount, length of contract, final balloon payment amount.
Who can benefit from using the Lease Purchase Option?
Lease Purchase is well suited for companies who would like to retain the car at the end of the contract as a company asset.
Prominent Features of the Lease Purchase Option
Flexible Contracts: Lease purchase agreements provide flexible options like fixed/variable interest rates, higher initial deposit, final balloon payment etc.
Low initial deposit: Generally initial deposit is equal to three months instalments.
Economic Monthly instalments: Monthly instalments are calculated after deducting the balloon payment. Therefore Monthly instalments are more economic.
Ownership: Customers enjoy ownership of the car at the end of contract provided all the terms and conditions of purchase are fulfilled.
On Balance Sheet: Customers show the vehicle as a balance sheet item and can write down the value against taxable profits and claim capital allowances.
Optional Balloon Payment: Lease purchase provides for a balloon payment which is equivalent to the projected market cost of the car at end of the contract.
VAT not recoverable: VAT cannot be recovered on purchase price of the car
Ownership Risk: Ownership, maintenance and disposal risks remain with the customer during the length of the contract.
Car Leasing UK’s qualified staff will guide and assist you on all aspects of Lease Purchase. Call us today, if you require any further details of Lease Purchase or a no obligation quote.