Finance Lease gives you the ability to pay a low initial rental as VAT is charged on the initial payment, monthly rentals and final balloon payment, not on the initial cost of the van. This removes the need to pay the VAT element on the full cost of the van in one lump sum. The hire is for a fixed period usually 24-60 months, there is a final balloon payment and at the end of the contract the van must be sold to a third party. Any money over and above the final balloon payment is yours to keep, minus a small charge from the finance company. However, if the sale price is less than the final balloon payment then you will be liable to pay the shortfall.
You are taking the RISK OR REWARD
Finance lease allows a business to obtain a vehicle and use it for the length of the lease and beyond with sub-sequential secondary or peppercorn rentals. Payments attract VAT and also rentals can be offset against corporation tax. Unlike contract hire disposal must be undertaken by the lessee of which normally 97.5% of the disposal amount can be retained.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
Car Leasing Bargains
Car Leasing Bargains is a trading name of Summit Garage (Dudley) Ltd Co, we are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 679783
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Registered Office : 413-415 Himley Road, Lower Gornal, Dudley, DY3 2RA
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