Finance Options Explained: A Brief Guide To Available Finance Options

What is Lease Purchase?

Lease Purchase is a finance solution that allows businesses to drive MORE vehicle for their money.

Like other finance agreements you choose the number of fixed monthly repayments (From 2 to 5 Years) and decide upon a deposit amount (VAT as a Minimum Deposit on Commercial Vehicles).  You have the choice to put down a larger initial payment to suit your circumstances.

Unlike other finance agreements, a Lease Purchase takes an agreed proportion of the vehicles value and defers it to the end of the agreement.  This is called a ‘Balloon Payment’.  This is the key to lease Purchases flexibility.

You pay your deposit, make your monthly repayments and at the end of the agreement you have two options. 

  • You can pay the balloon and take full ownership of the vehicle.
  • Alternatively, you can sell or part exchange the vehicle, using the equity difference between the vehicles market value and balloon payment as a deposit towards your next vehicle. (Please be mindful that there are many factors that can effect the vehicles market value – Such as: condition and mileage and service history – The liability of a shortfall between the market/sale value and the ‘Balloon Payment’ this would be your responsibility.)

For Business customers, Lease Purchase is classed as a purchase agreement.  This means that the vehicle will show as an asset and can have its value written down along with other plant and machinery, and interest costs may be allowed as a business expense.

Lease Purchase is quick, flexible and easy to arrange.

Benefits of Lease Purchase:

  • Minimum Deposit of the VAT on the purchase cost of the vehicle - Additional deposits can be paid to reduce the monthly payments further
  • Fixed Monthly Payments – Great for forecasting cash flow for your business
  • Agreement Periods from 24 months (2 Years) up to 60 months (5 Years)
  • No need for you or your business to be VAT Registered, however if your business is VAT       registered you can claim up to 100% of the VAT
  • A manageable monthly payment with the option to take ownership of the vehicle at the end of the term (By making the final payment)

Concerns of Lease Purchase:

  • Running Costs:  The running costs for the vehicle are your responsibility, Please take this into consideration when looking at Lease Purchase: Maintenance, Servicing and ‘Wear & Tear’ of the vehicle is your responsibility for the duration of the agreement.

Vehicle finance for businesses is a complex area and recommending the correct funding solution will depend on many factors including:

  •        Business Status
  •        Cash Flow
  •        Other Borrowings
  •        Vehicle Usage
  •        Suitability and Affordability

To ensure you get the very best advice, you should seek professional guidance from your accountant or a Business Finance Specialist.

Any agreement for vehicle funding will be completed without advice and only based on your explicit instructions.

New Vehicle Solutions Ltd is authorised and regulated by the Financial Conduct Authority, our firm reference number for consumer credit is 685872 New Vehicle Solutions Ltd is an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. We are a credit broker and not a lender.

We are permitted to conduct Credit Brokering, Debt-Adjusting and Debt-Counselling in connection with the whole or partial settlement of credit agreements for vehicle finance and consumer hire agreements.

You can check this on the FCA Register by visiting the or by contacting the FCA direct on 0300 500 8082

Company Registration Number: 8572112 – VAT Number: 166595858 Registered Office: Suite D Chapel Barns Merthyr Mawr Bridgend CF320LS

New Vehicle Solutions Limited does not and will not charge any fees for providing any Consumer Credit services. 

New Vehicle Solutions Limited  can introduce you to a number of finance providers, we may receive a remuneration if you enter into an agreement with them.

Calls may be recorded for training and monitoring purposes.

Last Update: 11/01/2019

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Fair Processing Notice

To abide with General Data Protection Regulation legislations (GDPR) we would like to make you aware of how we protect and use any personal data submitted by you to New Vehicle Solutions Limited;

The personal data we collect from you will be used for the following purposes:

Broker services to supply a vehicle and/or finance for this vehicle’

This includes:

  • To process and provide quotation(s)
  • To process your application for finance (Should you choose to proceed)
  • To process your vehicle order
  • Review your finance product as part of an on-going client relationship
  • To respond to complaints and enquiries
  • To keep you informed regarding any new products or services that may be of interest to you

All of the afore mentioned will be confirmed via email mailing and/or telephone communication.

You may withdraw this consent at any time.

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*Full details of New Vehicle Solutions Limited Data Protection Policy can be found here

All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.

All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.

Finance provider documentation fees may also apply

Alternative agreement types terms, mileages and deposit quotations are available on request.

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