Lease Purchase is an ideal alternative to bank borrowing for businesses that are not VAT registered and who want eventual ownership of their cars.
Benefits of lease purchase:
- Eventual ownership
- Low initial deposit
- The car can be written down in your books
- All interest paid can be off-set against tax
- No VAT on payments
- Option to take early settlement
- No restriction on mileage
This is simply a funding scheme that also favours businesses that prefer minimum payments to assist with cash flow.
This is because part of the capital cost is deferred until the end of the agreement and has the obvious effect of reducing the monthly payments.
In paying the final balloon payment you complete the agreement and the car is yours to keep.
If you trade the car in for another, then any allowance over and above the balloon payment is yours and can be put towards your deposit on your next car.
Likewise, if the allowance is less than the balloon, then you are responsible for the shortfall.
For a quotation, help, or advice contact your local dealership and ask to speak to one of our Business Managers at your local Evans Halshaw dealership