A Finance Lease agreement enables you to choose to pay either the entire cost of the vehicle, including interest charges, over an agreed lease period or opt to pay lower monthly rentals with a final residual payment based on the anticipated resale value of the vehicle. Finance Lease is not available to Private Individuals but is the preferred option for Vat registered Partnerships, Limited Companies, Self Employed & Sole Traders due to the significant tax advantages.
At the start of the Finance Lease contract, usage parameters for the vehicle are agreed, and providing they do not vary, monthly payments and interest rates are fixed for the duration of the contract. With a Finance Lease agreement you can benefit from fixed monthly costs without taking on the hassle of administration and operating risks. At the end of the contract, the customer can then choose to operate the vehicle under a "peppercorn agreement" but at no time will take ownership of the asset.