More commonly known as Hire Purchase with Balloon payment, this facility is suitable for those clients who wish to retain ownership of their vehicle fleet or operate a number of high value motor cars. 

What is Lease Purchase?

It is popular with companies which are fully or partially VAT exempt. For accounting purposes, the vehicle is treated as a fixed asset in the balance sheet, with the amount owing shown as a liability. Depreciation is accounted for through the annual written down allowance available on passenger cars.

Lease Purchase can be tailored to include a final balloon payment, equal to the approximate value of the vehicle at the end of the agreement.

Key benefits

• Second line of credit
• Low inital deposit - normally 3 months rentals
• Customer benefits from writing down allowances
• Interest allowable as a business expense
• VAT is not charged on monthly finance repayment