Finance Lease

Finance Lease is a VAT free method of financing a vehicle, normally for VAT registered businesses or companies and is popular for van acquisition.

The monthly rental is determined by the total cost of the vehicle, the contract period and the estimated future value of the vehicle which is based upon a proposed annual mileage. A 'balloon' payment equivalent to the estimated future value is payable at the end of the contract.

At the end of the contract period, the vehicle is usually sold and the proceeds returned to the Lessee unless an extended rental period is arranged. There are no excess mileage or damage costs to pay although a higher mileage or damaged vehicle directly affects the resale value of the vehicle. Features and benefits include:

• Fixed monthly payments
• Monthly payments are usually lower as they are not based on the full depreciation cost
• Includes balloon payment at the end of contract which can also be set according to your risk or requirement
• Improves key financial ratios, such as gearing
• Up to 100% of VAT on vehicle rentals can be claimed back
• You benefit from Plan's buying power
• No excess mileage or refurbishment charges
• Reduced administration
• Extend the lease for a single 'peppercorn' rental

Additional services can be taken to further remove your administrative and financial burden, including:

• Insurance Packages
• Breakdown Facilities
• Maintenance
• Fleet Administration
• Relief Vehicles