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Outright purchase explained

Outright purchase is 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, whether it’s in one payment up front or in monthly instalments. Most people usually end up going down the route of a large down-payment in order to cut high interest rates, but more often than not this will decimate your bank balance. Of course, it gets particularly tricky if you need to buy multiple vehicles.

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. 

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Alternative Route Finance Ltd is authorised and regulated by the Financial Conduct Authority for consumer credit activities and insurance mediation (Firm Reference Number 674315). You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. Alternative Route Finance Ltd is a Credit Broker not a Lender. Alternative Route Finance Ltd t/a Alternative Route Leasing work with a panel of lenders and we may receive a payment or benefit from the finance provider if you enter into an agreement with them.

 

Alternativeroutefinance.com, alternativeroutefinance.co.uk, onlinecontracthire.com, Alternative Route Leasing and Personal Car Leasing are trading names of Alternative Route Finance Limited, a company registered in England no. 3891807. Registered Office 11 North Street, Portslade, East Sussex, BN41 1DH. Vat Reg No. 768 6351 86. Data Protection Licence Z7368657.
 

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