Your business uses the vehicle while paying a rental rather than a repayment. The monthly rental is determined by the initial cost of the vehicle (excluding VAT), the period of the finance lease and the residual value (the estimated future value of the vehicle at the end of the finance lease period once depreciation is taken into account), plus interest.
Although you never take ownership, at the end of the finance lease contract a payment equivalent to the residual value is payable. Usually this means that the vehicle is sold and a proportion of the proceeds of the sale are returned to the lessee.
Most finance lease companies will offer a number of payment options to suit your cash flow. You can lower the monthly rental with a balloon payment at the end of the contract, or you can pay the entire cost in monthly rentals (normally referred to as a fully amortised Finance Lease), in which case you may be able to extend the finance lease with a secondary rental (sometimes called a peppercorn rental).
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 0845 606 6665
F: 0870 241 1402
7 Stratfield Park
Fleet UK is the trading name of Fleet UK.COM Ltd. Fleet UK are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 682714
Registered in England & Wales with company number : 4018111 | Data Protection No : Z6393738 | VAT No : 755080825 | BVRLA No : 2024
Registered Office : 9 Stratfield Park, Elettra Avenue, Waterlooville, Hampshire PO7 7XN
Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could effect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.
Copyright © 2018 Fleet UK, All rights reserved.