Lease purchase lets you lower your monthly payments, compared to hire purchase, by deferring a proportion of the vehicle cost to the end of the agreement. Lease purchase is great for small businesses that want to keep control of their cash flow to be able to change vehicles sooner.
As part of a Finance Lease agreement you can choose to pay either the entire cost of the vehicle, including interest charges, over an agreed period. Alternatively, you can opt to pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle (otherwise known as the ‘balloon payment’). Throughout the agreement, the vehicle remains the property of Mervyn Stewart.