A purchase lease is the ideal option for those who wish to purchase business fleet vehicles outright but don’t currently have the funds available to do so. Terms generally run from 24 to 48 months and ownership is yours following a final balloon payment. The leasing company has a retail value of the business vehicle and establishes the value of the vehicle at the end of the contract based on depreciation (the residual value). Once a down payment is made the monthly payments are calculated on the difference between the retail value and the residual value.
Reasons to Lease Purchase your Fleet Vehicles
One cannot reclaim VAT unless the vehicle is used solely for business. You are responsible for all maintenance, repairs and servicing throughout the contract, and the final balloon payment is not negotiable, and could be higher than the residual value.
To further discuss this finance option, please call the franchise branch you require and ask to speak to Sales or, for business fleets, please call us on 01233 220277.