Finance Options to suit your situation
For a quotation, help, or advice contact your local
dealership and ask to speak to a Finance and Insurance
Specialist.
Find out more about our Finance Options:
Finance Lease
A finance lease is a VAT-free method of financing a vehicle
that is usually accessed by VAT-registered businesses and
companies.
It is offered to businesses where a moveable asset (the vehicle)
is purchased from a supplier – your business can then use this
asset while paying an effective rental rather than a repayment.
Benefits of Finance Lease
- Low monthly costs and initial outlay
- Flexibility of payment options
- Latest vehicles
- Up to 50% of the VAT payments can be reclaimed
- Allows you to feature the vehicle on your balance sheet
- Hire rental tax allowances can be applied for
- Maintenance packages often included
- Proportion of the sale proceeds available at end of lease
term
The monthly rental is determined by the
initial cost of the vehicle, the period of the finance lease and
the residual value – that is the estimated future value of the
vehicle at the end of the finance lease period once depreciation is
taken into account.
As a residual value is used to calculate your
monthly rental, most finance lease companies will insist that you
stick to a strict mileage limit as this mileage restriction is used
to determine the future value.
You have full use of the vehicle during the
finance lease period.
Although you never take ownership, at the end
of the finance lease contract a payment equivalent to the residual
value is payable.
Usually this means that the vehicle is sold
and a proportion of the proceeds of the sale are returned to the
leasee.
Alternatively you could choose to pay the
entire cost of the vehicle (plus interest) in monthly
instalments.
Some finance lease companies may offer you the
chance to extend the finance lease with a secondary rental.