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Lease Purchase

  • Low initial payment
  • Fixed mileage contract
  • Fixed contract
  • Ideal for non-VAT registered customers who want eventual ownership of the vehicle
  • Effective budgeting with balloon facility. Ownership of the vehicle is acquired once the balloon has been paid in full at the end of the contract.
  • Flexible profiles to suit you
  • Fixed cost motoring


  • Monthly payments are not subject to VAT
  • The car will become a company asset
  • Lease Purchase frees up finance for other aspects of your company
  • The vehicle can appear as a balance sheet and you can record the value against taxable profits.


  • The balloon payment must be paid for at the end of the contract.
  • The vehicle is yours once you have paid the balloon payment. In some cases the balloon can be more expensive than the residual value. This means that you must have the money available to pay this balance or find a finance company so that you can pay the balance.
  • Dedicated funding product, which does not include maintenance or any other value added services.

What is Lease Purchase?

Lease Purchase is for people who would like to own a vehicle but do not necessarily have the money to buy one immediately. It is another type of car finance which is ideal for non-VAT registered customers who eventually wish to take ownership.

Lease Purchase arrangements are treated for tax purposes as a purchase by the customer, when the vehicle is brought into use.

It is a flexible product and it is possible to put down a larger initial payment, which has the advantage of reducing the monthly payments. The monthly cost is worked out on the difference between the retail value and the depreciation value. This means that choosing Lease Purchase for a vehicle which holds its value will work out in your favour. The reason for this is that the less the car loses the better the deal which is why companies do this for luxury cars often!

The major difference between Lease Purchase and contract purchase is that instead of having the choice at the end of the contract to purchase the vehicle, which you would have with contract purchase, you have already entered into a contract to purchase the vehicle at the end of the contract. This contract is only for those who are absolutely sure that they want to take ownership of the car at the end of the contractual period, and pay any balloon payments attached to the contract.

Lease Purchase agreements last between 2 and 4 years although the agreement can be settled at any time throughout the contract.

Who will suit Lease Purchase?

Lease Purchase is great for organised companies who are good at managing fleets and finding the best possible deals. If you do enough research on the vehicles which you would like to lease you will get a great deal. However failing to do the correct research may result in your balloon payment being much more than the residual value so just remember that this isn’t for everyone.

Trust, Compliance & Small Print

All primary prices shown on this page ex VAT at the prevailing rate unless otherwise stated.

An excess mileage charge may be applied if the contracted mileage is exceeded. Full details will be provided within the written quotation.

You will not own the vehicle and it should be returned clean in a condition that is commensurate with its age and mileage, otherwise charges may apply.

Central Contracts (S.O.T.) Limited is a credit broker not a lender
Central Contracts (S.O.T.) Limited is authorised and regulated by the Financial Conduct Authority
We are acting as a credit broker for the purposes of arranging your selected finance contract. We have a commercial relationship with a carefully selected panel of lenders and we may receive a commission from the selected lender. We do not charge you a fee for our credit broking services.

Central Contracts (S.O.T.) Limited.
Central House, Trentham Business Quarter, Bellringer Road,
Stoke-on-Trent, Staffordshire, ST4 8GB.

VAT Reg No. 715 25 1558 Company Reg. No. 3635778
Financial Services Register No. 677877 ICO Registration No. Z7112215

From April 2020 WLTP will replace the current NEDC test procedure for establishing the official Fuel Consumption and CO2 emissions of new cars. Please be aware of the following:
For vehicles registered on or after 1st April 2020 vehicle road tax costs will be based on the WLTP CO2 values and may change the monthly rental cost.
Vehicles registered on or after 6 April 2020 Please be aware the addition of certain factory fitted options may impact the vehicles co2 emissions and affect your monthly rental.

The Financial Ombudsman (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at

Part of the family est. 1998