Lease purchase contracts is available to business customers. It is an agreement designed to offer dedicated vehicle funding if your company eventually wishes to buy the vehicle, but doesn’t want to spend the money up front.
Lease purchase is purely a finance package and does not include maintenance or other added-value services, such as those offered with a contract purchase agreement.
NB: Nationwide Vehicle Contracts are specialists in Contract Hire and Personal Contract Hire agreements. While Business Lease Purchase agreements are no longer available with Nationwide Vehicle Contracts, it is important that you review the benefits and exclusions of every lease contract to better understand which agreement is best suited to your needs.
As part of a lease purchase agreement, you will pay an initial deposit and then a series of monthly payments until the end of the agreed contract length. The initial deposit and monthly payments are worked out using the retail value of the brand new vehicle, the length of contract (two or four years, for example), and the estimated residual value of the vehicle at the end of the contract.
It is worth noting that other types of business leasing contracts – such as contract hire and finance lease – are often more popular and common than lease purchase. This is because they offer more flexibility at the end of contract term than a lease purchase agreement.
If you’ve got further questions about which type of lease contract is best for you and your business, take a look at the information we’ve provided on each of the different contracts. Alternatively, give our team a call on 0345 811 9595.
At the end of the business lease purchase contract, your company will pay a final balloon payment and take ownership of the vehicle. At the start of a lease purchase agreement, it is agreed you’re your company will purchase the car or van at the end of the contract. You’re liable for the full value and there is no option to return the vehicle at the end of the agreement.
Visit our business leasing page to browse our wide range of available brand new cars and vans for business use.