Lease purchase explained
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to give you a clear understanding of who each funding option is suited to1. Full details of lease purchase
Lease Purchase spreads the vehicle payments over several years and enables you to own the vehicle at the end of the contract.
The monthly rental is determined by the initial cost of the vehicle, the period of the contract, the proposed annual mileage and the anticipated future resale value.
With Lease Purchase a payment equivalent to the estimated future value is payable at the end of the contract, when the vehicle becomes the property of the lessee.
To find out if a Lease Purchase arrangement would suit your organisation, call us now on 0870 224 2772 and we can help you make the decision that's right for you.
2. Key benefits of lease purchase
- Lease Purchase allows for accurate monthly budgeting
- Lease Purchase provides improved cash flow
- Lease Purchase ensures you have a minimum capital expenditure
- Lease Purchase provides a fixed interest rate
- Lease Purchase means that capital allowances are available
- Lease Purchase provides ownership of vehicle
- Lease Purchase ensures reduced administration
- Lease Purchase provides on-going advice/support
- Lease Purchase provides optional GAP insurance
3. Your options at the end of the contract
Do you want to finance the vehicle for a further period?
You can get a quotation to re-finance your final rental amount (subject to this being over £2,5000) from your Network franchisee. This can be for any tiem period up until the vehicle reaches 60 months old. If the quotation is acceptable, sign the form and return it to your Network franchisee. They will then get documentation to cover this new period drawn up for you to sign.
On payment of the final payment, title of the vehicle will pass to you. We will collect this payment by Direct Debit.
When the time comes to update your vehicle, please contact your Network franchisee.