Much like hire purchase, a lease purchase is a type of vehicle financing package with the ultimate goal of ownership. Want to find out more about lease purchasing? We’ll explain more:
At a glance.
What is Lease Purchase?
Lease purchase is a van financing option for those looking to own a van, with terms similar to that of other vehicle leasing agreements.
Lease purchase requires you to put down an initial deposit, which is usually the full VAT followed by fixed monthly repayments with the option of a final payment (balloon).
These repayments typically range between 24 and 60 months. At the end of the contract, or sooner, having paid all of the payments, including the optional final payment (balloon) along with any option to purchase fee, you will own the vehicle.
The Advantages of Lease Purchase
Structured much like a hire purchase, a lease purchase agreement has some unique advantages:
- Lower Payments: Thanks to the inclusion of a balloon payment and deposit, lease purchases typically come with lower monthly payments in comparison to other deals.
- Ownership: By far the biggest benefit of choosing a lease purchase is that the vehicle is yours at the end.
- VAT Deposit: VAT registered customers can claim back the full deposit.
- Fewer Restrictions: With the vehicle being intended to go in to your ownership at the end of the contract, a lease purchase comes with far fewer restrictions than a typical leasing deal.
- Tax Benefits: Lease purchase is a tax efficient finance option. To explore your options, give Vanzone a call.
The Disadvantages of Lease Purchase
Some of the disadvantages of lease purchase includes:
- High Final Costs: The size of balloon payment at the end of a lease purchase can vary, and tends to be costly depending on your contract.
- No Hand-Back: Lease purchases are intended to be used for vehicle ownership. As such, there is no possibility of a vehicle hand-back arrangement.
- Full Value Liability: With lease purchase, the buyer is liable for the full value of the vehicle. This can fluctuate depending on vehicle depreciation, and current market rates.
Learn More About Lease Purchase
Want to find out more about lease purchase? Contact us today and we’ll happily walk you through our terms, availability and any additional information you may need.
Not sure which option is right for you? Talk to our friendly team on
Feedback & FAQ’s
Great service start to delivery
I’ve had 3 vans off of Vanzone now since 2020, they are extremely well priced and really try to get you the best deal they can. I’ve seen other reviews complaining about lead times, I have to say that some times this is inevitable and entirely out of their control….
Very professional to deal with. Easy delivery process & staff always seem very helpful.
Very straight forward company to purchase a new van from . Good price, very helpful employees from start to finish. Van was delivered by a employee who could only be described as a true gentleman. When arrived the van only had 69 miles on the clock and was as described…
Not pushy, very prompt in responding, matched my requirements, no hassle. Good customer service, checked everything was going smoothly at all stages
THE COMPLETE PROCESS WAS SO EASY HIGH RECOMMENDED 🙌
Would highly recommend Vanzone such a great company to deal with from buying my new van to receiving my van great with updates all the way through and delivering to my home address would definitely buy from again thanks paul
I’m very satisfied with Vanzone. I dealt with Chris and Emily, they were very professional and I felt heard. The van was delivered exactly when they said. The drive who delivered my van was Rhys, he was such a gentlemen. Thank very much. Ilir/Leo