Lease Purchase

Lease Purchase for non-VAT registered companies.

A finance package of particular interest to non-VAT registered companies that wish to own their vehicle(s) without spending large sums upfront.


  • A simple HP finance package
  • Minimal initial expenditure (typically three months in advance)
  • Fixed monthly payments for accurate budgeting, freeing up finance
  • Monthly payments don’t attract VAT
  • Flexible structuring of the option-to-purchase price, i.e. residual value
  • Vehicle shows as an asset on your balance sheet
  • Vehicle depreciation is your responsibility
  • At end of contract you own the vehicle(s)


We source the vehicles of your choice and deliver free of charge. You will previously have agreed a contract term, annual mileage, monthly rental and a mutually acceptable option-to-purchase price (often referred to as a 'balloon' payment). The more a vehicle holds its value, the better the deal.

There is no return option. At the end of the contract (or sooner by mutual agreement), you own the vehicle(s). You can, however, ask us to sell the vehicle(s), with the sale proceeds being offset against the balloon payment. If the sale amount exceeds that payment, you receive the surplus cash benefit.


  • Other types of business leasing contracts such as contract hire and finance lease are often preferred. They offer more flexibility at the end of the contract term plus significant tax advantages.
  • Lease purchase doesn’t include maintenance or other added-value services. These are optional extras you will need to add to your monthly payments or fund separately and include:

    • Routine servicing, mechanical repairs, batteries, exhausts and tyres
    • Replacement vehicle in the event of accident or breakdown
    • Full membership of an Emergency Recovery scheme
    • Individual or fleet insurance cover

  • Because monthly payments reflect the difference between retail and residual values (cars’ depreciation) luxury cars suit lease purchase deals.


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