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Car Credit Finance Glossary - J, K, L
J
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Lease purchase
Lease purchase is a method of financing a vehicle, normally for vat registered companies. The monthly rental is determined by the cost of the vehicle, the period and the estimated future value of the vehicle which is based on the proposed annual mileage. A payment equivalent to the estimated future value is payable at the end of the contract, when the vehicle becomes the property of the lessee.
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