For non-VAT registered companies that want eventual ownership of the vehicle or for VAT registered companies who wish to claim the VAT in full with their first payment on a commercial vehicle. A funding agreement where the company acquires ownership when all the payments, including the option to purchase have been made. Part of the capital cost of the vehicle payment may be deferred into a balloon payment at the end of the agreement which equates to the anticipated value at the end of the agreed leasing period. However as with finance lease if the vehicle does not sell for the balloon amount you may risk negative equity on the balloon amount.
Key Benefits
- Low deposit
- No mileage restrictions, although you will end up paying for the depreciation for the miles travelled.
- Allows you to own the vehicle.
