A flexible lease option with no mileage limits or damage recharges.

Finance Lease is a flexible lease option with no mileage limits or damage recharges.  For a registered company that wants to handle your own vehicle administration, Finance Lease could be perfect for you.  Another advantage is the asset is shown on your company balance sheet.

Also, Finance Lease is a VAT-beneficial option. You can pay the entire van cost over the agreed lease period, plus interest charges.  Alternatively, you can pay lower monthly rentals during the lease period with the addition of a final balloon payment.  The balloon payment is based on your expected resale value of the van.

There are more advantages to Finance Lease, as well as some disadvantages.  More information is available at the link below, and we are on hand to help.  As always, get in touch to discuss your requirements and find out about our latest cheap van finance deals.

Advantages

• Minimum capital expenditure
• Accurate monthly budgeting
• A fixed interest rate is available on all contracts
• No damage recharge as you are responsible for disposal of the vehicle
• VAT recovery on the lease rentals (subject to 50% block)
• Corporation tax relief available against the lease rental charges
• Rentals can be offset against the businesses profits.

Disadvantages

• You will never own the vehicle as you must sell it to a third party at the end of the agreement
• Operating risk associated with running the vehicle at the end of the contract
• Interest rates can vary on some contracts
• You must have fully comprehensive vehicle insurance
• The company will be tied into a fixed contract
• Exposure to residual value risk for the company