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Individuals
Lease Purchase is similar to Hire Purchase, but offers a variety of
additional advantages.
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Like Hire Purchase, you choose your vehicle, pay a
low deposit (normally 10%) then make the remaining payments at a fixed
rate over an agreed period, usually 36 or 48 months. Assuming all the
terms of the agreement are met, the vehicle is then yours.
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With Lease Purchase you can reduce your monthly
payments significantly by choosing a 'final balloon payment'. Based on
the vehicle's estimated resale value at the end of the agreement, the
'balloon payment' is taken into account when the payments are
calculated, making them lower than a traditional Hire Purchase
agreement. This is an essential consideration if you are working to a
monthly budget. At the end of the term you will have the option to part
exchange for another vehicle, or make the 'final balloon payment' and
keep the vehicle.
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Businesses
Lease Purchase monthly payments do not attract VAT, making this scheme
particularly attractive to non-VAT registered businesses. All the
interest on payments is allowable against tax.
The business can budget with confidence because the interest rate is
fixed throughout the agreement. Lease Purchase offers excellent
flexibility to acquire the vehicle required on terms designed to suit
the budget.
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• Eventual ownership
• Low initial outlay
• Flexible payment pattern
• More capital available for your business
• Interest charges allowable against tax
• Fixed interest rate
• Write down allowance
• Fixed budgeting
• Finance not subject to VAT |
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Options
Before making your decision, you may wish to contact RyderCar Limited
to find out more about the full range of financial options available.
RyderCar can suggest the names of leasing companies for clients to
contact directly, but RyderCar does not accept any responsibility for
any business conducted by its clients with these companies.
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