Lease Purchase
Lease purchase is a form of motor vehicle finance available to both personal and business users - these will typically include new start companies with no credit history or bad credit, adverse credit or a poor credit history and also established businesses who suffer from a poor credit history or perhaps have adverse credit; as well as individual clients who have a poor credit history or current adverse credit - including those clients who are or have been involved in bankruptcy proceedings or in an Individual Voluntary Arrangement (IVA).
The lease purchase form of car finance is structured in a similar manner to the type of car finance known as Personal Contract Purchase (PCP) and is sometimes called Hire Purchase with a balloon. The balloon is the payment due at the end of the motor finance contract period. The monthly rental on lease purchase agreements is determined by the cost of the vehicle, the lease purchase contract period and the estimated future value of the vehicle - which is based on the projected annual mileage and therefore the mileage at the end of the lease purchase contract. When the end of the lease purchase contract is reached, a payment is due which is equivalent to the estimated future value (the balloon payment) and at this point the vehicle then becomes the property of the lessee.
The lease purchase form of motor finance is a type of car finance especially suited to vehicles which would be used for business, as the VAT is reclaimable if the vehicle is used solely for business. New start businesses with bad credit or a poor credit history as well as established business users with adverse credit will be ideally suited to taking motor vehicle finance in the form of a lease purchase contract.
Using this type of car finance to fund your vehicle has the advantage of giving you the option to settle your motor finance at any stage of the lease purchase agreement. Having a bad credit record need not exclude you, or your company, from driving the vehicle of your choice and we will be able to assist with your motor finance on a lease purchase contract even if you have been involved in bankruptcy proceedings or an IVA or if you have a poor credit history, adverse credit or CCJ's; regardless of whether you are an individual with bad credit or a new start company or established business which has adverse credit or a poor credit history.
For those with adverse credit, a poor credit history or just bad credit who have historically found motor finance difficult then lease purchase offers both the private individual, the new start company or established business a chance to drive the vehicle of their choice with an affordable car finance package.
