Finance Lease

Finance Lease

What is Finance Lease?

Finance Lease is a leasing arrangement where businesses can use a vehicle for a fixed period while making regular payments. Unlike outright purchasing or Contract Hire, a Finance Lease gives you the benefits of using the vehicle without owning it. The lease is structured around a primary rental period, after which you have several options for the vehicle’s future.

Key Benefits

  • Flexible Terms: Customize your lease term and mileage to suit your business operations.
  • Tax Efficiency: Lease payments can be offset against taxable profits, offering potential tax advantages.
  • Balloon Payments: Option for lower monthly payments with a final balloon payment at the end of the term.
  • Asset Utilization: Use the vehicle throughout the lease term without the upfront costs of purchasing.

How Does It Work?

  1. Choose Your Vehicle: Select the van that best fits your business needs from our wide range.
  2. Agree on Terms: Decide on the lease duration, mileage, and monthly payment structure.
  3. Use the Van: Utilize the van in your daily business operations throughout the lease term.
  4. End of Lease Options: At the end of the lease, you can extend the lease, return the vehicle, or sell it on behalf of the finance company and potentially retain a portion of the proceeds.

Is Finance Lease Right for Your Business?

Finance Lease is ideal for businesses that want the benefits of using a van without the long-term commitment of ownership. It suits companies that need flexibility in their fleet management and those looking for tax-efficient financing methods. If your business has specific vehicle usage requirements or prefers a customizable approach to vehicle financing, Finance Lease could be the perfect solution.

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How we can help

We’re committed to providing straightforward and effective vehicle financing solutions. Our experienced consultants help you navigate through our flexible Finance Lease and Business Contract Hire options, ensuring you find the perfect fit for your business’s needs and budget.

Tailored Financial Solutions: Customized leasing options that cater to your specific business requirements.

Transparent Terms and Conditions: Clear, straightforward agreements with no hidden fees or complications.

Expert Support: Continuous guidance and support from our knowledgeable team throughout your leasing journey.

Finance Lease FAQs

Got questions? We’ve got answers
How are payments calculated in a Finance Lease?

Early termination of a Finance Lease is possible but may involve additional costs. The amount you’ll need to pay to settle the lease early will depend on the specific terms of your agreement and how much of the lease term remains.

Are there any mileage restrictions in a Finance Lease?

Generally, Finance Leases don’t have strict mileage restrictions like some other leasing options. However, higher mileage can affect the van’s residual value, which might impact your financial options at the end of the lease term.

What happens at the end of a Finance Lease agreement?

At the end of a Finance Lease, you typically have three options: extend the lease, return the van, or sell the van on behalf of the finance company. If you choose to sell the van, you can retain most of the proceeds, but a small portion may go to the leasing company as a final rental payment.

Is maintenance included in a Finance Lease?

Maintenance is not usually included in a Finance Lease agreement. It’s up to your business to maintain the van throughout the lease period. Some leasing companies offer separate maintenance packages at an additional cost.

How does a Finance Lease affect my business's balance sheet?

Under a Finance Lease, the leased van is recorded as an asset on your balance sheet, and the lease liability is also recorded. This can have implications for your company’s perceived asset base and debt levels. It’s important to consult with a financial advisor to understand how this will impact your financial statements and ratios.