SMC MG Rover Lease Purchase

Lease Purchase is similar to Hire Purchase in many ways, except with Lease Purchase the regular payments are lower because a lump sum final payment (based on the estimated resale value of the car and its end of term mileage) is deferred until the end of the agreement.

So, your business has the security of fixed regular payments but for considerably less. It's also tax-efficient as a proportion of the car's value can be written down against profits and the interest you pay is allowable against tax

Benefits for your business:

If you want a tax-efficient way to purchase a car for your business and maximise your cash flow, Lease Purchase could provide the solution.

• Your regular payments are lower than Hire Purchase because of the final lump sum payment at the end of the agreement.
• Fixed regular payments make budget management easier.
• At the end of the agreement, provided all the necessary payments have been made, your business owns the car.
• The car is classified as an asset on your balance sheet, so a proportion of its value can be written down against profits.
• The interest your business pays is allowable against tax