Hire Purchase

A method of gaining ownership of the car by spreading the payments, terms are generally between one and five years with no VAT implications, the total cost of the vehicle including VAT being spread over the contract period.

Title of the goods does not pass to customer until all payments are made however the vehicle is perceived as being the property of the customer. There is an annual taxable allowance of 25% of the value of the vehicle up to a maximum of £3,000 and 100% of the interest charges up to £12,000, catch up allowed upon vehicle sale if sale price is less than written down value.

Contracts can be straight forward with equal monthly payments or have a large final payment or balloon at the end to help reduce monthly costs. Products that fall into this category include Personal Contract Plans (PCP).

Advantages

Any profit on disposal retained by customer
Some flexibility for early termination
No mileage restrictions

Disadvantages

Large deposits often required
No VAT advantage for registered companies

Good for

Non VAT registered companies and private individuals who require flexibility with early termination and are happy to take the full risks of ownership.

Choose a model

Part exchanges are still possible when leasing or buying over the internet with Mercedes Leasing, click here to value your car.

Operating leases, finance lease, PCP, contract hire, balloon payments - Sounds complicated but it isn't, click here for all the information you need.

Used Vehicles on lease, another great offer available through Mercedes Leasing, click here for more information.

Although specialising in Mercedes Benz we also often have fantastic deals available on other brands, click here for more information and current offers.

If it appreciates, buy it .... if it depreciates, lease it!
John Paul Getty

In the USA 20% of all new vehicles are leased - in the UK it is less than 1% but the market is growing as more people become aware of the benefits of leasing.