Outright Purchase

Although providing the customer with tremendous flexibility outright purchase can tie up valuable cash. Cars can be depreciated at 25% per annum up to a maximum of £3,000, with capital allowances available for the depreciation amount.

Advantages

  • Any profit on disposal retained by customer.
  • Total flexibility for early termination.
  • No mileage restrictions.

Disadvantages

  • Ties up cash flow.
  • No VAT advantage for registered companies.
  • Customer totally exposed to full risks of ownership.

Good for

Non VAT registered companies and private individuals that are cash rich and are happy to take the full risks of ownership.