Flexibility is one of the keys to success for any business, large or small. That’s why Finance Lease is a very popular product with many of our customers.
A finance lease is a method of financing a vehicle that is usually accessed by VAT-registered businesses and companies, however sole traders and partnerships can also take advantage of finance lease. It offers the benefits of ownership because you can take advantage of equity build up in the vehicle via a leasing product with a low initial rental up front. VAT is only charged on the initial rental, monthly rentals and final rental, not the initial cost of the vehicle. You have full use of the vehicle during the finance lease period. Finance lease differs from contract hire as the hirer is responsible for the Balloon payment at the end of your lease agreement which pays off the leasing company’s interest. You agree how much your balloon payment will be, depending on whether you want higher or lower monthly payments during the lease agreement. Simply vans will always set the Balloon to reflect a realistic future value by utilising professional market data at outset.
- Fixed monthly rentals + VAT
- Choice of contract period from 12 to 60 months
- Monthly rentals are up to 100% tax deductible
- Potential to carry on using the vehicle at the end of the primary lease period by utilising a peppercorn rental facility
- Secondary form of funding i.e. Outside normal banking facility
- Early Termination of agreement – subject to charges
- Flexible mileage requirements and end of life damage charges. Balloon values are derived from term and mileage requirements
- Re-funding option at end of life
- You retain the majority of the equity built up in the vehicle over the contract. Remember damage of differing mileages will directly affect the vehicles future value and any equity