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For companies that want eventual ownership of the vehicle, a variation of hire purchase, which offers corporation tax advantages on high value cars, and benefits to those organisations unable to recover VAT.
This is a funding agreement where the company acquires ownership when all the payments have been made.
Part of the capital cost of the vehicle payment may be deferred into a final payment at the end of the agreement which equates to the anticipated value of the vehicle at the end of the agreed finance period.
Watch out, the final payment / balloon / residual / bubble is not optional, you are responsible for it and it may be more than the value of the vehicle at that time! |
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