Lease Purchase may be the ideal way for you to buy vans and cars for your business.
Lease Purchase offers you all of the benefits of Hire Purchase but with the addition of deferring part of your loan until the end of your agreement. This gives you a larger final payment, which is sometimes referred to as a balloon payment.
To do this, we will discuss the vehicle you’re buying and base the final payment on how many miles a year you’ll be traveling and what the estimated value of the vehicle will be at the end of your loan.
This has the affect of lowering your monthly repayment and may allow you to buy a newer or more expensive vehicle when compared to a Hire Purchase loan over the same period.
As with a Hire Purchase loan, if the vehicle you are buying is subject to VAT, you’ll need to pay that as a deposit.
At the end of your loan, if you wish to keep your vehicle you can then pay the final payment. We also offer our customers the ability to refinance their balloon payment over a period which fits with their monthly budget.
If you decide you want to change your vehicle rather than paying the balloon payment, you can part exchange it and use the value of the vehicle to repay the final payment and any remaining equity can be used as a deposit towards your next vehicle.
You can also do this at any time during your agreement, you’ll just need to speak to us to get your settlement figure.
Once you’ve got your settlement figure, you can settle your loan to us at any time. We also offer our customers the ability to make partial settlements. This means if you can’t manage to settle it all in one go, then a partial settlement allows you to repay some of your outstanding finance and reduce your monthly repayment.
If you’d like more information about Lease Purchase, give us a call and we’d be happy to discuss it further.
If you decide you want to change your vehicle part way through your loan then all you need to do is speak to us to get a settlement figure.
This is the amount required to settle the outstanding loan but as it’s secured on your vehicle, you may be able to sell or part exchange your vehicle to do this.
Once you know what your settlement figure is, we’ll talk you through the process of changing your vehicle, ensuring your new finance is right for your needs.
We also offer our customers the ability to make partial settlements, this allows you to repay some of your outstanding finance and reduce your monthly repayment.