Finance Lease

Looking to drive your business forward with a cost-effective and flexible vehicle financing solution? Look no further than finance lease. Finance lease provides numerous advantages that can enhance your operational efficiency and financial flexibility.

This type of lease agreement is available for both VAT registered and non VAT registered companies who prefer to handle the administration of their vehicles and have the asset shown on their balance sheet, rather than off balance sheet. The hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or alternatively pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle with mileage taken into account.

The main benefits of Finance Lease:

  • Your capital isn’t invested in a depreciating asset.
  • VAT on rentals reclaimable (reduced to 50% for cars used privately)
  • Up to 100% tax deductible depending on cost of vehicle.
  • The VAT is payable on your monthly payments (on purchase agreements you pay 100% of the VAT up front at the beginning of the agreement).
  • Fixed payments for the term of the agreement.
  • Low deposits available together with flexible monthly payments.
  • Lower monthly payments can be achieved by including a final residual payment.
  • No penalty charges for additional mileage or damage at the end of the agreement.
  • Please note the hirer carries the risk should the vehicle value be less than the final residual payment.
  • Road fund license is included only in the first year of the agreement.

Make a smart choice for your business and unlock the potential of finance lease. Get in touch with us today to find out more!