Why lease Purchase?

If you want to buy a car or van outright in the Manchester area, but don’t have the money up front then lease purchase could be for you. Lease purchase is a means of financing a car or van in a similar way to personal contract purchase (PCP) but with some fundamental differences. Below we explain how it works and how you can find the vehicle you are looking for.

What is Lease Purchase?


Car and van leasing normally covers a period of 24, 36, 48 or in exceptional circumstances up to 60 months.  The customer is responsible for all taxation and maintenance costs as well as the initial deposit, which includes an agreement fee, followed by the agreed number of monthly payments. There is also a final payment which must include an option to purchase fee, which then entitles the hirer to claim ownership of the vehicle.

Mercedes A-Class
2016 Ford Transit
Kia Pro_cee'd
Practical but stylish
Vauxhall Vivaro
Reliability and space for any job

What are the pros and cons of Lease Purchase?


A lease purchase agreement may not necessarily be the right method of car or van finance for everyone. Here are the advantages:

  • Luxury/prestige vehicles – car and van leasing is best suited to the finance of high-class cars or vans due to the fact that you must take on the residual value. Higher residual values will also result in lower monthly payments.

  • Company asset – Car and van leasing is ideal for companies that want to retain the car or van as an asset.

  • Frees up finance – When leasing a car or van you take control of the vehicle while still holding money back to put into your company. Initial deposits are only usually the equivalent of three months’ payment.

  • Lower monthly payments – Car and van leasing payments are typically cheaper than hire purchase.

  • Balance sheet – The car or van can appear as a balance sheet item and you can write down the value against taxable profits.

  • Ownership – Once the balloon payment is made, the car or van is yours.


There are disadvantages to lease purchase too, including:

  • Road fund licence is not included as part of a the car or van leasing agreement.

  • VAT not recoverable – You can only reclaim VAT if the car or van is used exclusively for business use.

  • Ownership risk – The car or van is yours and thus the effects of depreciation and the costs of maintenance and disposal are all risks throughout the contract.

Range Rover Vogue
Ferrari F12 Berlinetta
Renault Captur SUV
Get French style and reliability
Honda NSX
Turn heads with this stylish super car!
Who is Lease Purchase right for?


The popularity of car and van leasing is growing year on year and the car industry is also in a period of continual growth, which means there are more cars than ever on Britain’s roads.

So, why is car and van leasing so popular, you might ask – the answer is simple. Leasing a car or van gives you the opportunity to drive around in a brand new vehicle, built to your exacting specification, for a fraction of the price of its true cost – ring us on free phone 0800-975-2746 for a quote or email at d.cole@bvl-ltd.co.uk!