Lease Purchase
What is Lease Purchase?
Lease purchase is a van financing option for those looking to own a van, with terms similar to other vehicle leasing agreements.
It requires an initial deposit (usually the full VAT) followed by fixed monthly repayments, with the option of a final payment (balloon). These repayment terms typically range between 24 and 60 months.
At the end of the contract, or sooner, once all payments have been made (including the optional final balloon payment and any option to purchase fee), you will own the vehicle.
The Advantages of Lease Purchase | Flexible Van Ownership with Vanzone
Lease Purchase at Vanzone offers a smart way to finance your next van, combining affordable monthly payments with the opportunity for full ownership at the end of the agreement. It’s structured similarly to hire purchase but includes a final balloon payment, allowing for more manageable monthly costs.
✅ Lower Monthly Payments
Lease Purchase agreements usually come with reduced monthly payments thanks to the inclusion of a balloon payment at the end of the term. This helps you spread costs more efficiently across the agreement.
✅ Full Ownership at the End
One of the biggest benefits of Lease Purchase is complete vehicle ownership. Once all monthly repayments—and the optional final balloon payment—are made, the van becomes yours.
✅ VAT Recovery for Businesses
VAT-registered businesses can reclaim the VAT paid on the initial deposit, improving tax efficiency and preserving cash flow.
✅ Fewer Limitations
Unlike traditional leases, Lease Purchase comes with fewer usage restrictions. There are generally no mileage caps or return condition penalties, making it ideal for business use.
✅ Tax Benefits
Lease Purchase may provide valuable tax advantages for commercial van users. Speak to our Vanzone finance experts to understand how this option fits your business.
Things to Consider with Lease Purchase
While Lease Purchase is a popular and flexible van finance solution, it’s important to be aware of a few key considerations:
⚠️ Large Final Balloon Payment
The final payment—called the balloon—can be substantial, depending on your agreement. It’s essential to plan for this cost when choosing Lease Purchase.
⚠️ No Vehicle Return Option
Unlike Contract Hire or Finance Lease, you cannot return the van at the end of the term. You’ll be committed to purchasing the vehicle.
⚠️ Full Value Responsibility
You are responsible for the van’s full value, including any depreciation. If resale values drop, you may owe more than the vehicle is worth if you choose to sell.
Is Lease Purchase the Right Van Finance Option for You?
If you're looking to own your van while keeping monthly costs lower, Lease Purchase from Vanzone offers the perfect balance of flexibility and affordability. It’s ideal for VAT-registered businesses and sole traders who want fewer restrictions with a clear path to ownership.
Speak to a Vanzone finance specialist today to explore the best Lease Purchase van deals for your business
Learn More About Lease Purchase Contact us today and we’ll happily walk you through all the options available to you.
What our customers say...
Cant fault it, excellent price and they got me the exact van I wanted when everyone else said there's none available. Would recommend with confidence.
Excellent service, excellent vehicle at an excellent price.
Vehicle arrived on time and in perfect condition.
excellent company and great customer service
Excellent service from initial enquiry to delivery of vehicle. Easy paperwork for the finance, deposit paid and vehicle delivered within 2 weeks. Kept fully informed throughout. Sales team were very helpful, the admin team did what they said they would and the delivery driver was lovely. What else could you ask for! Will definitely use Vanzone again. Many thanks.
