Finance lease

Finance Lease is a hire product which gives businesses the flexible option of retaining the vehicle (for a small annual fee) at the end of the agreement. However, the customer may also sell the vehicle to a third party once all the rental payments have been made. The customer retains 100% of the sales proceeds (paid as a rebate of rentals).


1. You pay an advance rental followed by a fixed number of monthly rentals over an agreed contract period.

2. To help bring down your monthly rentals, and improve cash flow, you can choose to take an optional balloon payment. The payment of the balloon is made at the end of the primary contract period. We will need an expected annual mileage to help us with this calculation. VAT is paid on the monthly rentals whereas with a purchase finance option the customer would be required to pay the whole VAT up front.

3. At the end of the term there are two options. Even though you do not own the car, you can sell it on our behalf. You keep 100% of the sale proceeds, which you can then use as the advance rental for your next new vehicle. You may be able to offset this advance rental against your taxable profits*. Alternatively, once all the rentals and any balloon payment are paid, you can continue your contract with us by entering a secondary period of rental. You will pay a “peppercorn rental” of just £50 a year plus VAT. So, if your vehicle is still working hard for you, maybe with bespoke decals or fittings, you have the option to keep using it or replace it – the choice is yours!


Fixed monthly rentals for ease of budgeting

Lump sum or number of rentals as an advance rental

Option to extend agreement into a ‘secondary’ contract period for a nominal annual fee of £50 plus VAT (peppercorn rental)

Option to include a deferred final ‘balloon’ payment to keep monthly costs low

Tax relief benefits the same as Contract Hire*

50% VAT usually reclaimable of cars*

100% VAT usually reclaimable on LCV’s*

Reduced VAT paid by business, as monthly vehicle rentals can be offset against taxable profits*

* We always recommend you take independent financial advice to determine how your own business can benefit from the advantages offered by financing your company vehicles.