Ideal for non-VAT-registered companies that want eventual ownership
of the vehicle.
A funding agreement where the company aquires title to the vehicle
when all payments have been made (including the option to purchase
fee). As with a Finance Lease, part of the capital cost of the
vehicle may be deferred until the end of the agreement. This
"balloon payment" should be in line with the anticipated value
of the vehicle at the end of the agreed period, which would then
have the effect of reducing the monthly payment.
