Lease Purchase Explained
What is Lease Purchase?
Lease Purchase is a straightforward form of purchase agreement specially designed for business users. The advanced payment and repayment periods can be structured to help meet your budget and the length of time you anticipate owning the vehicle. You will automatically become the legal owner of the vehicle once all payments have been made.
How Lease Purchase Works

1: Pay an advanced payment
Select the initial advanced payment you wish to pay, if any at all.
If you choose to pay an advanced payment, you can either pay in cash or trade in your existing vehicle (part exchange).

2: Pay Monthly Payments
Choose how long you would like the agreement for and make regular monthly payments to repay the balance and interest. The interest rate is fixed which means you pay the same amount each month.

3: You own the vehicle
Once all the monthly repayments have been made, you will own the vehicle. As with all our finance products, there are no arrangement or purchase fees.
Other things you should know:
- This is an unregulated agreement. We secure the agreement against the vehicle. If you don't keep up your repayments, we may take steps to recover the money owed. This may include repossessing the vehicle.
- Vehicle finance for business can be complex. The right finance plan will depend on several factors including business status, cashflow, other borrowings, and tax planning.
- We strongly suggest that you seek financial advice before making your decision.
- You can only get lease purchase if you’re a limited company, a PLC, or a limited partnership on an unregulated basis.
- The minimum loan amount is £3,000. Repayment periods can vary from 12-60 months, with a minimum deposit requirement of 0% (Criteria may vary dependent on campaign programmes)
Download our Lease Purchase Product Guide
Our product guides are downloadable as a PDF via the link below.
Frequently Asked Questions
Unlike BCH, there are no agreed mileage limits for Lease Purchase, and you do not need to return the vehicle at the end of the agreement. You simply pay fixed monthly payments for a set period and the vehicle belongs to your business.
Lease Purchase is a good option if:
- You want to own the vehicle outright at the end of the agreement
- You prefer straightforward fixed monthly payments without a lump sum deferred to the end of the agreement
No, Kia Finance will hold title of the vehicle until you have made all monthly payments.
When applying for finance you will be required to supply certain personal information, as well as to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for further proof of your address dated within three months of the submission of your application. An acceptable proof of address includes a bank or credit card statement, utility or council tax bills, or mortgage statements.
Account Management Fees | Empty |
---|---|
Copy statement of account | £12.00 |
Change of payment due date* | £25.00 |
Change of vehicle registration plate | £30.00 |
Collection of vehicle upon voluntary termination of agreement | £70.00 |
Transfer of agreement fee** | £150.00 |
Arrears Management Fees | Empty |
---|---|
Monthly arrears fee*** | £35.00 |
Internal collection agent visit | £50.00 |
External collection agent visit | £250.00 |
* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Kia Finance reserves the right to amend these fees at any time.
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