Finance Lease

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