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Finance Lease

Finance Lease a flexible lease option with no mileage limits or damage recharges.  For a registered company that wants to handle your own vehicle administration, Finance Lease could be perfect for you.  Another advantage is the asset is shown on your company balance sheet.

Also, Finance Lease is a VAT-beneficial option. You can pay the entire van cost over the agreed lease period, plus interest charges.  Alternatively, you can pay lower monthly rentals during the lease period with the additional of a final balloon payment.  The balloon payment is based on your expected resale value of the van.

There are more advantages to Finance Lease, as well as some disadvantages.  More information is available at the link below, and we are on hand to help.  As always, get in touch to discuss your requirements and find out about our latest cheap van finance deals.

Finance Lease is perfect for VAT registered businesses who want to handle the administration of their vehicles, and have the asset shown on their balance sheet.

A VAT-beneficial option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.

  • Finance Lease is a method of financing a vehicle that is usually favoured for commercial vehicles and by VAT registered businesses
  • The business obtains use of the vehicle by paying a rental each month
  • The monthly rental is determined by the initial cost of the vehicle (excluding VAT), the period of the Finance Lease and the residual value (sometimes called the balloon payment), plus interest
  • Although you never take ownership, at the end of the Finance Lease contract a Final Rental (balloon) is payable
  • Usually this means that the vehicle is sold and a proportion of the proceeds of the sale are returned to the lessee

Features

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • A fixed interest rate is available on all contracts
  • No damage recharge as you are responsible for disposal of the vehicle
  • VAT recovery on the lease rentals (subject to 50% block)
  • Corporation tax relief available against the lease rental charges
  • Rentals can be offset against the businesses profits.