Finance Lease

What is a vehicle finance lease?

A finance lease is a popular transaction for businesses needing cars, vans, and commercial vehicles where contract hire is not convenient.

The financial lease provides a flexible and cost-efficient way to gain access to the use of a vehicle. It is paid on a monthly basis. These costs are determined by looking at how much the initial cost of the vehicle was, how long the lease will last, and the estimated residual value at the end of the contract, you return the vehicle to the lease provider who will then sell it.

Benefits of finance leasing

• Pay in monthly installments rather than one large costly upfront payment.
• Fixed monthly payment costs for accurate monthly budgeting.
• On-going advice and support
• Have access to some of the latest vehicles for an affordable monthly payment. Once the agreement is over, you can lease another car instantly.
• A finance lease is a very popular choice for VAT-registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use). On contracts with maintenance, the service element VAT is 100% recoverable 

Things to remember 

• Please take this into consideration when looking at a Finance Lease the running costs for the vehicle are your responsibility, and Maintenance, Servicing, and ‘Wear and Tear’ and Road Tax for the vehicle is your responsibility.
• You will never ‘own’ the vehicle as the vehicle must be sold to a third party at the end of the agreement.
• You must have fully comprehensive vehicle insurance.