This type of vehicle financing arrangement; Lease Purchase, is a good option for non VAT registered customers who are very sure that they need to own the vehicle at the end of the contract.
The flexibility of this product allows you to make larger initial payment, the advantage of reduced monthly payments. Monthly payments are calculated on the difference between the initial retail value and predicted the depreciation in value plus interest payments. This means that choosing Lease Purchase and looking after the vehicle, to keep its value high, work out in your favour.
Chief difference between Lease Purchase and Contract Purchase agreements is in giving up any choice at the end of the contract whether to purchase the vehicle: the choice you do have with a Contract Purchase agreement, Lease purchase IS a contract to buy the vehicle, when the contract ends.
You do need to be sure that you want to own the vehicle when the contracted period is over. You have to be able to budget for or finance the balloon payment you signed for in the contract. Typically, Lease Purchase agreements last between 2 and 4 years, though most have an option to settle the agreement at any time throughout the lifetime of the contract.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 08000 199405
F: 01524 781417
Lakeland Vehicle Solutions
Clawthorpe Business Centre
Burton in Kendal
Lakeland Vehicle Solutions are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 712728
Registered in England & Wales with company number : 07433876 | Data Protection No : Z7212672 | VAT No : 856992853
Registered Office : Lakeland Vehicle Solutions Ltd, c/o Meiring CCA, Unit 1 Strands Barn, Strands Farm Lane, Hornby
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