A financial arrangement where the full capital cost of the vehicle is repaid over the lease period. Upon completion of the 'primary lease period' the vehicle can be retained for a 'peppercorn' rental. A 'balloon' payment can be included to offer lower monthly payments. Residual profit lies with the lessee. Title remains with the finance provider but you have the equity. A maintenance package is not usually included.
- Normally low initial payment
- Additional line of finance to bank
- Rentals are allowable against corporation tax (cars - 100% up to Co2 of 160g/km, 85% over 160g/km; 100% on commercial vehicles).
- VAT recoverable (limited if private use)
- Tax and cash flow efficient especially for commercial vehicles
- May be suitable for those who cover higher mileages
- On completion of the agreement 90% or more of the disposal proceeds are returned to you
- On balance sheet accounting
Contact us to find out more about our finance lease and how we can help you