Finance Leasing gives you all the advantages of vehicle ownership at minimal cost and maximum flexibility. Because we buy the vehicle and recover the VAT, the cost to you of financing it is calculated on a VAT exclusive price, dramatically reducing monthly rental. Your initial rental normally comprises of monthly rentals in advance, and there is usually a final lump sum "Residual Value" rental which contributes to a low monthly rental figure.
Flexibility is another strength. You have the choice of a lease period from 1 - 5 years. During your agreement, the vehicle is an asset on your balance sheet, so rentals can be offset against taxable profits. Up to 100% of the VAT on rentals can also be claimed. At the end of your agreement the vehicle can be sold to a nominated third party with the proceeds, less a nominal fee, being paid back to you as a rebate of rentals.
This rebate will attract VAT, so if you have reclaimed VAT during the agreement, HM Customs & Excise will need to know about VAT on your rebate. Alternatively you may choose to keep the vehicle on a secondary period rental known as a "peppercorn" rental. Low fixed costs and tax efficiency make Finance Leasing the first choice of many businesses.
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