For non-VAT – registered
companies that want eventual ownership of the vehicle. A funding
agreement where the company acquires ownership when all payments,
including the purchase payment have been made. Part of the
capital cost of the vehicle payment may be deferred into a
Balloon Payment at the end of the agreement, which equates
to the anticipated market value of the vehicle at the end
of the agreed leasing period.
The benefits of Lease Purchase:
Fixed monthly cost
Ownership at the end of the lease
Flexible contract
Balloon Payment
Low initial outlay
Business capital not tied up in a depreciating asset
Finance not subject to VAT
Interest reclaimable against tax
Writing down allowance
Road fund licence included for the full contract length
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