Business lease
purchase
By Nationwidevehiclecontracts.co.uk
What is business lease purchase?
It is an agreement designed to offer dedicated vehicle funding if
your company eventually...
How could it work for your business?
As part of a lease purchase agreement, you will pay an initial
deposit and then a ser...
Is my company eligible?
Business lease purchase is available to all financially eligible
companies, sole traders and partn...
The key features of business lease
purchase
• Pure finance package
• The vehicle will belong to your company once the leas...
The key benefits of business lease
purchase
• Your company will own the vehicle once the final balloon
payment has been ma...
Considerations for business lease
purchase
• The balloon payment must be paid for at the end of the contract
• In some cas...
What happens at the end of the
contract?
At the end of the business lease purchase contract, your company
will pay a final...
Looking for further information?
Check out the full guide here:
http://www.nationwidevehiclecontracts.co.uk/guides/busines...
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Nationwide Vehicle Contracts - Business Lease Purchase

A guide to business lease purchase from Nationwide Vehicle Contracts. You can view the full guide here: http://www.nationwidevehiclecontracts.co.uk/guides/business-leasing/lease-purchase
Published on: Mar 3, 2016
Published in: Automotive      
Source: www.slideshare.net


Transcripts - Nationwide Vehicle Contracts - Business Lease Purchase

  • 1. Business lease purchase By Nationwidevehiclecontracts.co.uk
  • 2. What is business lease purchase? It is an agreement designed to offer dedicated vehicle funding if your company eventually wishes to buy the vehicle, but doesn’t want to spend the money up front. Lease purchase is purely a finance package and does not include maintenance or other added-value services
  • 3. How could it work for your business? As part of a lease purchase agreement, you will pay an initial deposit and then a series of monthly payments until the end of the agreed contract length. The initial deposit and monthly payments are worked out using the retail value of the brand new vehicle, the length of contract, and the estimated residual value of the vehicle at the end of the contract.
  • 4. Is my company eligible? Business lease purchase is available to all financially eligible companies, sole traders and partnerships. Contract hire and finance lease are often more popular and common than lease purchase because they offer more flexibility at the end of contract term than a lease purchase agreement.
  • 5. The key features of business lease purchase • Pure finance package • The vehicle will belong to your company once the lease purchase agreement has begun • The slower a vehicle’s value depreciates, the better deal you will be able to get • The car or van is paid for via an initial deposit, low monthly payments, and a final balloon payment • The vehicle must be purchased at the end of the agreement
  • 6. The key benefits of business lease purchase • Your company will own the vehicle once the final balloon payment has been made • Vehicle will be retained as a company asset • Low deposit and monthly payments, freeing up company money • Monthly payments are not subject to VAT • The vehicle can appear as a balance sheet item; the value of it can be written down against taxable profits • The vehicle is registered in the name of your company
  • 7. Considerations for business lease purchase • The balloon payment must be paid for at the end of the contract • In some cases the balloon can be higher than its value at the end of the contract • Vehicle must be insured with full comprehensive cover
  • 8. What happens at the end of the contract? At the end of the business lease purchase contract, your company will pay a final balloon payment and take ownership of the vehicle. You’re liable for the full value and there is no option to return the vehicle at the end of the agreement.
  • 9. Looking for further information? Check out the full guide here: http://www.nationwidevehiclecontracts.co.uk/guides/business- leasing/lease-purchase Want to ask us a question? facebook.com/NationwideVehicleContracts ----------------- twitter.com/car_lease ----------------- plus.google.com/+nationwidevehiclecontracts