Lease Purchase
Low monthly payments spread over several years with no annual mileage. The deferred sum (or GMFV Guaranteed Minimum Future Value) paid at the end of the term results in your ownership of the vehicle.
Similar to Personal Contract Purchase agreement, a Lease Purchase spreads the cost of the vehicle over an agreed period of time on fixed monthly payments. However unlike PCP, a Lease Purchase does not have the option to return the vehicle at the end, instead you must pay the deferred balloon payment to keep the vehicle or sell/part exchange the car with the dealership.
Lease Purchase allows you to keep monthly payments low, sandwiched between an initial advance payment/deposit and the balloon payment deferred until the end of the agreement. Lease Purchases are available for both personal and business users.
Lease Purchase Benefits
Contract Hire is the ideally funding choice for those who like to change their vehicle frequently without the worry of depreciation and costs that go into maintaining your own vehicle. There are other benefits to Contract Hire leasing:
- At the end of the agreement you will own the vehicle, spreading the payment of the vehicle over several years.
- Low deposit and monthly payments make it an ideal way to purchase a new and more
- Lease Purchase can be taken out as a business or individual. For business' it gives you the benefit of showing the vehicle on the balance sheet as an asset.
- For businesses, monthly payments are not subject to VAT.
Do I qualify for Lease Purchase leasing?
To be eligible for Lease Purchase on a vehicle you must be at least 18 years of age with a full UK driving licences. A decent credit rating is also required for all finance agreements.
What happens at the end of the lease?
At the end of the Lease Purchase agreement you must pay the deferred final balloon payment and take ownership of the vehicle. Alternatively you could arrange a part-exchange with our dealership to buy the vehicle off you at the end of the contract.
Contact one of our Chorley Group dealerships today to learn more about Lease Purchase and other finance options available.
