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...
Excellent service for getting our first van for our retail business. I was bewildered by the world of business vehicle finance and Simon was kind enough to invite me to their office and explain it to me. This advice was invaluable.
The finance process was simple and communication throughout was brilliant.
The van was delivered to our place of business within 2 weeks, in impeccable condition. Very happy with it.
I would highly recommend Vanzone!
I got a finance lease through Vanzone. It was a great experience from start to finish. Jon helped me spec the van and from when I ordered it, the delivery was within 2 weeks.
I took my time selecting a vehicle and found Vanzone patient and not pushy at all. Would recommend so far based on the sales process, van arrived as expected.
Great experience with Vanzone. I found the van I was looking for on their website. They quickly confirmed that it was available and sorted all the required paperwork for the sale. I was contacted by John who was very professional, helpful, and easy to deal with. Van arrived on the scheduled delivery date. Process was easy and smooth. Service was that good I recommended to a friend who has since purchased a van from Vanzone.
