This topic covered Lease Purchase.
- A Lease Purchase is similar to a Hire Purchase or Conditional Sale agreement except that payments are structured like a lease agreement where the customer pays advance payments rather than a deposit.
- A balloon payment can also be incorporated into an agreement, which represents the future residual value of the vehicle.
- As it is a purchase plan, the payments do not attract VAT and the customer can take title/ownership of the vehicle at the end of the agreement.
- Lease Purchase agreements can be Regulated, exempt and unregulated under the consumer credit regulation depending on the nature of the customer, the amount of credit and the purpose of the lending.