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Outright Purchase Explained

Outright purchase is the method of paying for a vehicle in full with one payment. The price will be determined by a dealership, for vehicles that can be ordered from the factory or bought from pre-built physical stock piles.

It's a very popular method of acquiring a company car, but it is not necessarily perfect; while there are certainly advantages to purchasing a business car, it’s not a flawless system.

The big advantage that comes from buying a company car for the business is the issue of ownership. The vehicles are assets of the company and are treated as such, allowing you to sell if an employee leaves the business or even after a set period of time, recouping some of the money that was spent.

The big disadvantage to outright purchasing a company car is that you have to pay the total fee of the car in one payment up front (For paying in monthly instalments see Hire Purchase). Whilst one payment can cut high interest rates, more often than not this will decimate your bank balance. Of course, it gets particularly tricky if you need to buy multiple vehicles too.

It’s also important to remember that when you purchase a company car, you are assuming the responsibility that comes with ownership of the vehicle. That includes organising the car’s insurance, maintenance and repairs as well as paying the cost of it all.

Ultimately, the decision to go for outright purchase or not depends on how long you intend to keep the car. For example, if you only need it for a few months, then you’re better off getting a daily rental or short term car leasing deal. Company cars are usually more cost effective over longer periods of time, but you’ll need to figure out how long your journeys are and which cars will be best suited for them.

If you’re interested in outright purchase, then make sure you’re in it for the long haul. Otherwise, leasing could be the better option. 

 

Want to know more? See other finance options, or click here and we'll get back to you.

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Alternative Route and Alternative Route Leasing are trading names of Hanborough Enterprises Ltd who is authorised and regulated by the Financial Conduct Authority for consumer credit activities and insurance distribution. Our Firm Reference Number is 631448. You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. We are an independent vehicle finance broker and we operate with a panel of carefully selected funders. We may receive commission and/or other benefits from the finance provider if you enter in to an agreement with them. 

 

Alternative Route’s trading address is 11 North Street, Portslade, Brighton, East Sussex BN41 1DH.

 

Hanborough Enterprises Ltd is a company registered in England no 07216831. Registered office Jamesons House, Compton Way, Witney, Oxfordshire OX28 3AB. VAT Registration Number 110 3005 02. Data Protection Licence Z264186X. We are a broker not a lender


Finance is subject to status. Pictures are for illustration only and may not be the exact model. Calls are recorded for training and quality purposes. Errors and Omissions Excepted.


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