These agreements are most applicable if you are restricted in the amount of VAT which you are able to recover or if you have a number of expensive vehicles (in excess of £25,000 each) in your fleet.

You enter into an agreement for the vehicle for a fixed term at a fixed monthly rate.

At the end of this term you have the option to buy the vehicle, by making a final ("balloon") payment which you agreed at the beginning of the contract. You may return the vehicle to us and share in any profit derived from disposal. You will not however have any further payment to make if the vehicle returns less than the agreed "balloon".

The fixed monthly payment includes the purchase price, depreciation, the length of the agreement, mileage and the cost of any additional services you choose to include (maintenance, breakdown cover etc).

You will benefit from the following:

	Low initial outlay, typically equivalent to three monthly payments, optimising capital utilisation.
	Fixed monthly costs, assisting with cash flow management.
	The lowest purchase price component due to our volume buying.
	Tax advantages of ownership at the end of the agreement.
	No exposure to disposal risk.