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Finance: Finance Lease
You hire a vehicle for a fixed period without the responsibility of ownership
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Key Features |
Finance Lease |
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- Your vehicle is hired to you for a fixed period. Following payment of your final monthly rental, the vehicle must be sold to a third party. At the end of the lease period, you have the choice of three options:
- Retain the vehicle for a further 12 months by extending the agreement. This option may be exercised only once.
- Sell the vehicle to an independent third party for a fair market value. We will invoice the third party on your instruction and then return 95% of the net sale proceeds to you.
- Return the vehicle to us. We will sell it and return 95% of the net sale proceeds to you, after deduction of auction and collection fees.
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Key Personal Benefits |
Finance Lease |
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- Vehicle use without ownership
- Eliminates capital expense
- Improved cash flow with rentals paid from revenue income
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Key Business Benefits |
Finance Lease |
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- VAT reclaimable
- Rentals allowable against taxable profits (proportionally)
- You benefit from the net sales proceeds
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For more information and expert advice, telephone Pam Tait, Marlborough West London's Business Manager on 08448 152486
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Authorised and regulated by the Financial Services Authority for the purpose of insurance mediation activity. |
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