What is it?
This is a straightforward form of purchase agreement specially designed for business users. The initial deposit and repayment periods can be structured to help meet your budget and the length of time you anticipate owning the car. You will automatically become the legal owner of the car once all payments have been made.
How does it work?
- Your dealer will structure the agreement to meet your requirements based on the car, the agreement duration, your deposit and your monthly budget
- After paying the deposit you make regular monthly payments to cover the amount borrowed plus any interest and fees
- The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement
- At the end of the repayment period you will become the legal owner of the car providing all payments have been made
Features and Benefits
- Provides fixed monthly payments over a term of between one and five years
- Payments are not subject to VAT since this type of agreement is a purchase plan
- There are no mileage restrictions
Other things you should know
- Only when all payments under the agreement have been made do you become the owner of the vehicle
- The agreement is secured against the car. If you do not keep up your repayments, we may take steps to recover the money owed, which may include repossession of the car
- Vehicle finance for business can be a complex subject. The right finance plan will depend on several factors including business status, cash flow, other borrowings and tax planning
- We strongly advise you seek professional help from the business expert at your local car dealer or speak to a financial adviser
- Lease Purchase is only available to limited companies, PLCs or limited partnerships on a non-regulated basis