A Finance Lease is ideal for companies requiring a flexible and VAT
efficient funding option for their vehicles. VAT is reclaimed on the
purchase of the vehicle and the customer pays interest charges on
the net figure.
With a finance lease agreement, rentals can be further reduced by
incorporating a final "balloon" payment (not guaranteed) and if required
maintenance costs can be included.
At the end of the agreement the customer has the option of either
entering a "secondary lease period" with a "peppercorn rental" payable
per annum or selling the vehicle and retaining up to 99% of the sales
proceeds.
The benefits of a finance lease are:
Minimal initial outlay, typically 3 months rentals
Interest charges applied to the vehicle cost net of VAT
Rentals offset against taxable profits (subject to IR legislation)
Major Fleet discounts incorporated within the rental.
