Finance Lease

Finance Lease is a product available for businesses needing cars or commercial vehicles. These include Limited companies, Partnerships, Sole Traders and anyone else self Employed. It cannot be used for private vehicles.

There are two ways your Finance Lease can be set up. You either pay the full cost of the vehicle over the agreed term, or like a PCP agreement you can lower your monthly payments by having a balloon payment at the end of the contract. This amount will be set at the start and based on the anticipated value of the vehicle at this time. Also known as the Residual Value or ‘RV’.

At the end of the contract you can either sell the vehicle to a third party or alternatively, pay the outstanding balloon payment and operate the vehicle under a peppercorn agreement. Some funders will assist in sale/ disposal of the vehicle on your behalf.

The key benefits of finance leasing

Fixed payments throughout

Low initial outlay – flexible deposit

Claim 50% VAT back on cars and 100% on commercial vehicles (if you’re VAT registered)

VAT is paid on the rentals, not the purchase price. Payments can normally be offset against taxable profit

No additional mileage or damage penalties at the end of the agreement

Possibility of equity in the vehicle if sold for a profit

With a finance lease, you are hiring the vehicle for a specified period of time, usually 2-4 years. It will be a lower upfront cost than buying and the asset will show on your company’s balance sheet. You will handle the administration of the vehicle.

The key features of finance lease

When contract hire is not suitable for your business, a Finance Lease may be the answer

Your company handles the administration of your vehicles, and the assets will show on your balance sheet

Two agreement types available – either pay the entire cost of the vehicle over the term, or enjoy lower monthly payments by have a balloon payment at the end

Either sell to a third party at the end of the contract or pay the balloon payment and operate the vehicle under a peppercorn agreement

It's not just Personal and Business Contract Hire we do!

We also offer PCP, HP, Finance Lease and Outright Purchase.

Our finance packages can be tailored to fund your new or used vehicle.