Lease Purchase
Lease Purchase is a leasing option available to businesses. It's useful if you want to own a vehicle at the end of the lease.
Benefits of Lease Purchase
You get to keep the vehicle at the end of the lease (but monthly payments tend to be higher than Contract Hire - it's similar to HP).
The main points
- The vehicle will be registered in your company name and will appear on the balance sheet
- Monthly payments are not subject to VAT
- Tax writing down allowances can be claimed
- There is no mileage restriction
- There is no option to include a maintenance package
- You will receive road tax for the first year
What happens at the end of the lease?
You pay for the full value of the vehicle via monthly rentals with a balloon payment at the end of the contract.
At the end of the contract, you own the vehicle - there is no option to hand it back.
Other leasing options
For information on other finance types (including Contract Hire, Contract Purchase and Finance Lease), read our leasing options pages.
Top tip - Take a look at our leasing finance comparison chart. This useful chart will help you compare leasing options at a glance.
Unsure which option is right for your business?
Then call us on 0845 052 5268 or send us an enquiry - We'll happily go through the different options with you.
