Finance Lease
Finance Lease is a tax efficient option where you can choose to fund the entire cost of the vehicle over a set period OR pay lower monthly rentals and then a final 'balloon' payment based on the anticipated resale value of the vehicle.
The vehicle is shown on the balance sheet and the VAT is reclaimable. The monthly rental is determined by the cost of the vehicle, the period of the contract and the proposed annual mileage.
You benefit through fixed cost motoring but you also take on the administration and operating risks for the vehicle.
Key Benefits
- Option for deferred end payment which reduces monthly rentals
- Early termination options available - more flexible than Contract Hire
- VAT recoverable on monthly rentals
- Minimum capital expenditure - Improved cash flow
- Rentals allowable against company's taxable profits
- Accurate monthly budgeting - Fixed cost motoring
- Fixed interest rates