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Lease Purchase Vehicles From Lakeland Vehicle Solutions

Own a vehicle, bit by bit with a Lease Purchase contract.

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 Lease Purchase Advantage with LVS:

  • Manageable low initial outlay
  • Fixed mileage contract suits your driving habits
  • A way to allow non-VAT registered individuals to get ownership of a vehicle
  • The vehicle is yours once you have paid the balloon payment
  • Allows for effective budgeting and cash flow control. The balloon payment facilitates ownership of the vehicle at the end of the contract
  • No VAT to pay on monthly payments
  • Vehicle will become company assets
  • Release valuable finance for other priorities in your business
  • As an asset you can record the vehicle's value against profits

Disadvantages of Using Lease Purchase:

  • Balloon payments at end of the contract must be paid in full and can be significant!
  • Sometimes the balloon is more than the residual value
  • This is a dedicated financing product, and will not have maintenance or any other value added options
  • Fully comprehensive insurance for the vehicle is essential

Further Considerations About Lease Purchase:

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.

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