Fulton Vehicle Leasing

There are a number of different leasing products available to you whether you’re looking at leasing as a business or personally, here you will find an overview of each product which may help give you decide which suits best. If you are still unsure or have some questions please give the team a call as we will be more than happy to help.

What is Lease Purchase?

Lease Purchase is a product designed for a business to purchase a vehicle without having to pay for it in one lump sum, very similar to Hire Purchase (HP) although with lease purchase a final balloon payment can be added to the end of the contract to reduce the monthly payments. Contractual terms are flexible like other products but you are committed to purchasing the vehicle.

Below gives you a good idea of how the rentals are calculated, the benefits and points to consider about this product.

What affects the Monthly Repayment?

A number of factors come into play when calculating the monthly repayment for you and these need to be considered when thinking about which vehicle to buy. Our team here are happy to discuss these with you in detail as we believe it is important you make an informed decision that is right for you.

Vehicle Purchase Price - This a big factor, the more expensive the vehicle generally the more you can expect your payment to be, although strong residual values can sometimes buck this trend, resulting in a nice surprise. We automatically source vehicles at the most competitive price we can and don’t worry, we only buy from the manufactures franchised dealers.

Mileage & Contract Length – The more miles you do, the more the value of the vehicle drops, so of course your payment will be higher. Contract Length can have a varying impact, normally the longer you have the vehicle the lower the payment, but this is not always the case.

Final Balloon Payment – You can choose to have a final payment (balloon) at the end of the contract term to reduce the monthly repayments, this will be set by the funder based on a number of factors such as annual mileage and contract length. They will set it at a level that they believe to be in line with the future residual value and sale price of the vehicle. The funder will monitor previous sales of the vehicles and closely and constantly monitor industry data, which gives them a good idea of where to set it in the first place.

Mileage & Contract Length – It is important to set an accurate mileage at the start of the contract, because the disposal of the vehicle is your responsibility. If you do more miles than originally stated within the contract terms, you will not be charged any excess mileage charges BUT if you are looking to clear the final payment with the proceeds of the sale, you may be left with a shortfall. On the flip side should you do less miles then you anticipated, you may actually end up with some equity.

Maintained Contracts – With some funders, like Contract Hire, you can include the maintenance package, this includes; servicing, mechanical repairs, tyre replacement and comprehensive breakdown cover. Ideal if you do not want any surprise bills and a fixed monthly cost!

The Key Benefits of Lease Purchase

  • Ownership – Once all payments are made you will own the vehicle.
  • Company asset – Ideal for companies that want to retain the vehicle as an asset.
  • No mileage or damage penalties from the funder, although any damage will affect the re-sale value.
  • Option to re-finance the final payment should you decide to keep the vehicle longer than the initial contract term.
  • Ability to settle the agreement early without early termination penalties, although settling early may result in a shortfall between the settlement figure and the value of the vehicle which will remain your responsibility.

Points to Consider

  • You are committed to the purchase of the vehicle with no option to return it to the funder.
  • You are responsible for insuring the vehicle on a fully comprehensive policy.
  • Doing more miles than stated at the point the contract was taken out can lead to a short fall when trying to clear the final payment from the proceeds of selling the vehicle. This also applies should the vehicle not be in a reasonable condition at the point of sale.


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Alternatively you can contact us on 0118 983 8020 or email us at sales@fultonleasing.co.uk

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