Business Lease Purchase


Lease purchase contracts are available to business customers. It is an agreement designed to offer dedicated vehicle funding if your company eventually wishes to buy the vehicle, but doesn’t want to spend the money up front.

Lease purchase is purely a finance package and does not include maintenance or other added-value services.

Could it work for your business?

As part of a lease purchase agreement, you will pay an initial deposit and then a series of monthly payments until the end of the agreed contract length. The initial deposit and monthly payments are worked out using the retail value of the brand new vehicle, the length of contract (24, 36, 48 months etc), and the estimated residual value of the vehicle at the end of the contract.

Key features of business lease purchase?

  • Pure finance package – no maintenance packages or other services are included.
  • The vehicle will belong to your company once the lease purchase agreement has begun.
  • The car or van is paid for via an initial deposit, low monthly payments, and a final balloon payment.
  • The vehicle must be purchased at the end of the agreement.

Key benefits of business lease purchase?

  • Your company will own the vehicle once the final balloon payment has been made.
  • Vehicle will be retained as a company asset.
  • Low deposit and monthly payments, freeing up company money.
  • Monthly payments are not subject to VAT.
  • The vehicle can appear as a balance sheet item; the value of it can be written down against taxable profits.
  • The vehicle is registered in the name of your company.

What to consider when looking at Business Lease Purchase

  • The balloon payment must be paid for at the end of the contract.
  • In some cases the balloon can be higher than its value at the end of the contract.
  • Vehicle must be insured fully comprehensive.

What happens at the end of the agreement?

At the end of the business lease purchase agreement, your company will pay the final balloon payment and  own the vehicle. At the start of a lease purchase agreement, it is agreed that your company will purchase the car or van at the end of the agreement. You’re liable for the full value and there is no option to return the vehicle at the end of the contract.

  • The small print *

    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. 

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