Finance Lease
Finance Lease is a method
of funding that enables you to benefit from the many advantages of Contract Hire
while having the opportunity of taking the risk and reward on disposal of the
vehicle at the end of the agreement.
Finance Lease operates in
exactly the same way as contract hire with the exception of the way the lease
is terminated. With Contract you simply hand the vehicle back to the lease company
at the end of the agreement. With Finance Lease you are responsible for disposing
of the vehicle at the end of the agreement and paying the lease company a figure
that is agreed at the start of the lease thus enabling you to benefit by keeping
any of the sale value that exceeds the agreed payment. The final payment is called
the vehicles residual value. As you are responsible for paying the residual value
you can increase it at the start of the lease, which will have the effect of reducing
the monthly payment. |
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| Some
points to be considered are: |
 |
Available
to business and private users |
|
Low monthly
payments |
|
Flexible
payments |
|
No large
deposit or final payment |
|
You accept
risk / reward of depreciation |
|
A brand
new vehicle of your choice and specification |
|
Vat and
tax efficient |
|
Contracts
tailored to your needs |
|
Servicing
can be included |
|
Any car
or commercial vehicle available |
|
Single
vehicle or complete fleet |
|
Fixed costs |
|
No admin
required |
|
Off balance
sheet funding |
|
Benefit
from economies of scale |
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