Service & Maintenance
Finance Lease is a rental agreement that, whilst never leading to full ownership, could give you a share of any future resale value. There are two types of Finance Lease agreements – ‘balloon’ repayment and full payout.
‘Balloon’ repayment is when you defer a proportion of your vehicle’s value until the end of the agreement, leaving you with lower monthly rental repayments.
Once you’ve selected your initial rental, there are three decisions to make that will affect your monthly rental repayments:
Choose between 18 and 48 months
Agree an amount to defer until the end of the agreement
Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value)
Lower monthly rentals than a full payout agreement
An opportunity to share in any excess sales proceeds which may settle or contribute to the final ‘balloon’ repayment. The sales proceeds are not guaranteed to cover the final ‘balloon’ repayment
Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses
A proportion of rentals may be claimable as an expense against taxable profits
Full payout is when you spread the amount financed equally over the term.
Once you’ve agreed your initial rental, there are two decisions to make that will affect your monthly repayments:
Choose between 12 and 60 months
Contact your local retailer if you would like a Hire Purchase
There’s no large final repayment at the end of the agreement
You’ll have an opportunity to share in any excess sales proceeds
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