Lease Purchase & Hire Purchase

This type of purchase agreement is for both VAT registered and non VAT registered companies that want ownership of the vehicle at the end of the agreement. The company acquires ownership when all payments, including the purchase payment have been made. In a similar manner to finance lease, a pre agreed proportion of the capital cost of the vehicle can be deferred in the form of a residual or final balloon payment at the end of the agreement, based on the anticipated resale value of the vehicle at the end of the agreed period. This is a widely used van leasing option favoured by those looking for ownership at the end of the agreement.

The benefits of Lease Purchase:

• Ease of budgeting through a fixed monthly cost.
• Ownership at the end of the agreement.
• A balloon or residual payment if reduced monthly costs are required.
• Your capital isn’t invested in a depreciating asset.
• Available to both VAT registered and non VAT registered companies.
• Interest is reclaimable against tax.
• Writing down allowance can be used against the capital cost of the vehicle.
• Road fund license is included only in the first year of the agreement.
• Please note the hirer carries the risk should the vehicle value be less than the final residual payment.

Take control of your vehicle financing and drive your business forward with confidence with Jacksons Leasing. Explore our lease purchase and hire purchase options today to discover the perfect solution for your business needs.