Finance Lease Explained

Finance Lease is designed for businesses due to the significant tax advantages and is not available for private individuals. There are two ways in which you can structure a Finance Lease; either fully pay all the cost of the vehicle or pay a final payment which reduces the monthly payments. Title does not pass to the lessor who can either extend the agreement paying a modest annual peppercorn rental or dispose of the vehicle to a third party.

Key Features

  • Fixed monthly costs for the duration of the contract which improves budgeting
  • Flexible payment terms (fully amortised or with balloon payment)
  • Low Capital outlay
  • Fixed or variable interest options
  • No end of contract recharges such as additional mileage or damage
  • 98% of the sale proceeds retained by client on disposal

Key Benefits

  • Low Capital outlay
  • Improved Cash Flow – VAT is only payable on the rentals
  • Payments can normally be offset against taxable profit
  • 100% tax deductible – see HMRC website for tax guidelines

To enquire about finance for any make and model car, van or light truck please complete and send this form or call us on 01824 719005

Your Name*

Your Email Address*

Your Telephone Number*

Car Make (e.g. BMW)*

Model (e.g. 520)*

Finance Type* Not KnownContract HirePersonal Contract HireContract PurchasePersonal Contract PurchaseFinance LeaseLease or Hire PurchaseFlexible Lease

Period of Hire* 24 Months36 Months48 Months

Annual Mileage* 5,0008,00010,00012,00015,00020,00025,000

Maintenance* With MaintenanceWithout Maintenance