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MG Lease Purchase and Finance Lease
MG Lease Purchase
If you want a tax-efficient way to purchase a MG vehicle for your business and maximise your cash flow, Lease Purchase could provide the solution.
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 of Lease Purchase for your business:
• 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
MG Finance Lease
With Finance Lease your MG vehicle is hired to you for a fixed period of time without the option of ownership. Your payments cover a percentage of the vehicle costs plus the finance charges. At the end of the agreement, the proceeds from the sale of the vehicle less a small administration fee are returned. You can also choose to pay a final balloon payment to reduce your monthly payments.
Benefits of Lease Finance for your business:
• Fixed Rate
• Use of the vehicle without large capital outlay
• Improved cash flow with fixed monthly rental
• VAT reclaimable (depending on usage)
• Rentals allowable against taxable profits
• Your business could benefit from the net sale proceeds
To find out more about a Lease Purchase Agreement or Finance Lease for your next MG Rover, please contact SMC MG Rover today.