Finance lease

‘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:

Your payment period

Choose between 18 and 48 months.

Final balloon repayment

Agree an amount to defer until the end of the agreement.

Mileage per year

Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value).

Lower monthly rentals

Lower monthly rentals than a full payout agreement.

Excess sales proceeds

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.

VAT

Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses.

Claimable as expense 

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:

Your rental repayment period

Choose between 12 and 60 months

Mileage per year

Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value).

No final repayment

There’s no large final repayment at the end of the agreement.  

Excess sales proceeds

You’ll have an opportunity to share in any excess sales proceeds.

Claimable as expense

A proportion of rentals may be claimable as an expense against taxable profits.

VAT

Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses.