Obtaining a van through Lease Purchase with Donnelly Volkswagen Van Centre, provides small businesses with a cost-effective way to get on the road.
What is Lease Purchase?
Lease Purchase is a type of vehicle finance. This particular leasing agreement usually lasts between 12-48 months and is ideal for those who wish to eventually gain full ownership of their vehicle.
At the beginning of the lease agreement, one initial rental payment is made, which can be as little as the cost of one monthly payment.
Customers can opt to pay a higher amount upfront, reducing the cost of the required monthly repayment amounts.
After making the monthly repayments across the course of its agreement, the business is required to make one final ‘balloon’ payment, upon which it will gain full ownership of the vehicle, and it will become a company asset.
The ‘balloon’ payment is an agreed payment amount which is deferred until the end of the contract, opting for a higher balloon payment is also a way in which a business may reduce its monthly repayment amounts.
The Benefits of Lease Purchase?
One of the main benefits of Lease Purchase is that it requires a low initial payment – something which is attractive to smaller businesses with a lesser budget or reduced cash flow.
Alongside this, the monthly repayments and the final ‘balloon’ payment required at the end of the agreement allows for accurate monthly budgeting.
With Lease Purchase, the VAT is payable at 100% within the deposit, or it can be built into the finance where the lender will lend the full amount, including the VAT over the payments.
Unlike Contract Hire, there are no monthly invoices involved, and as the customer is purchasing the vehicle, they will be able to claim the VAT off the purchase invoice at the beginning of the agreement.
vehicles at Donnelly Volkswagen Van Centre
The extensive selection of vans available at Donnelly Volkswagen Van Centre, ensures that there is a vehicle suitable for every budget and any job requirement.
Alongside Lease Purchase, customers can also benefit from a number of other affordable finance and leasing options.
To find out more about the business finance offers available at Donnelly Volkswagen Van Centre please visit https://www.donnellygroup.co.uk/volkswagen-commercial/new-vans-offers/