Finance Lease

VAT Efficient and Highly Flexible

Finance Lease marries many of he benefits of contract hire and lease purchase. Because it is a hire product, VAT is paid on the rentals which can help cash flow. But unlike Contract Hire, Finance Lease offers end of contract flexibility for those customers who might like to retain the vehicle (a small annual fee applies). Once all the payments have been made, the hirer can sell the vehicle to a 3rd party and retain 100% of the sales proceeds (paid as a rebate of rentals).

What Are The Benefits?

• 5 Year plans available
• Fixed monthly rentals for ease of budgeting
• Lump sum or number of rentals as advance payment
• Option to extend agreement into a ‘secondary' period for a nominal annual fee (peppercorn rental)
• Option to include a deferred sum/final ‘balloon' payment to keep monthly costs low
• Same tax relief as Contract Hire
• 50% VAT usually reclaimable on cars
• 100% VAT usually reclaimable on LCV's

How Does It Work?

1. You pay an initial deposit followed by a fixed number of monthly rental payments over an agreed contract period.
2. At the end of the term you can choose a further ‘secondary' lease of hire or dispose of the vehicle on our behalf and keep 100% of the proceeds (paid as a rebate of rentals). Any balloon taken will need to be settled at the end of the primary period.

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Finance Lease Explained