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.
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:
Concerns of Lease Purchase:
Vehicle finance for businesses is a complex area and recommending the correct funding solution will depend on many factors including:
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 www.fca.org.uk or by contacting the FCA direct on 0300 500 8082
Company Registration Number: 8572112 – VAT Number: 166595858 Registered Office: New Vehicle Solutions Ltd, Tremains Road, Bridgend, CF311TZ
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: 10/09/2019