What are my options for taking out a lease purchase plan?
If you are considering purchasing a vehicle but aren't sure how best to finance your car, a lease purchase plan could be just what you have been looking for. One of our most popular lease payment plans with businesses looking to pay for a fleet of company cars, a lease purchase plan is equally suited to individual motorists who wish to buy their own car but want to do so with the help of a manageable payment scheme. When you sign up to a lease purchase agreement, you pay an initial deposit on your lease vehicle upfront and then continue to pay off monthly instalments for the duration of your contract. Once your contract is over, you become the proprietor of your vehicle in full.
In many ways, lease purchasing deals are very similar to a hire purchase plan. Companies love the fact that they can offset interest charges against tax. The low initial payment means that it is an easy payment plan to get started with and it gives the option of purchasing a car without committing to large outgoings. If you are purchasing a fleet of company cars, it is an excellent way of balancing out the cost and staggering the outgoings month by month. You also have the advantage of knowing what you will pay each month, enabling you to effectively budget around your expenditures.
The final payment once your lease purchase plan is up is called a "balloon payment". This is a lump sum worked out to reflect the usage of the leased automobile and the expected mileage during the contract. However, although you have a lump sum to pay on closing, there are various flexible rental plans available to allow you to choose the best payment terms for your needs.
