Funding Methods - Outright Purchase

Advantages:

Ø Perceived flexibility: vehicles are bought and sold as needed, without fear of penalty charges.
Ø Low funding costs: if cash comes from deposits.
Ø Writing down allowances: 25% of the capital cost of the vehicle can be offset against tax each year up to a maximum of £3,000 per annum.
Ø Vehicles are on balance sheet.