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Finance Lease

Finance Lease is a popular funding option for commercial vehicles or vans where Contract Hire is not always suitable or the best option.

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.

Advantages:

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • A fixed interest rate is available on some contracts
  • No damage recharge as you are responsible for disposal of the vehicle
  • Finance lease is a very popular choice for VAT registered companies and businesses as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use). On contracts with maintenance the service element VAT is 100% recoverable
  • Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for cars with a CO2 output of 130g/km or below, there is currently no disallowance
  • Reduced administration
  • On-going advice and support
  • Optional full maintenance package with breakdown rescue cover
  • Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages:

  • You will never own the vehicle as the vehicle must be sold to a third party as the end of the agreement
  • Operating risk associated with the vehicle
  • Interest rates can vary on some contract
  • You must have fully comprehensive vehicle insurance

More Information on Finance Lease:

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).

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Testimonials

Alex,

Thank you for managing to find a physical car with the exact specifications my wife wanted, something no other company could achieve. Also, for having patience with a very awkward and hard to please customer! Can't recommend this company highly enough! Fantastic from beginning to end.

Paul Sharpe

Amelia,

I wanted to say thanks for all your help throughout the process of getting my new Tesla 90D. From the start of the first call you demonstrated a perfect balance of being friendly and helpful while fast and efficient. The way you kept me informed each step of the way was exemplary - telling me what you would do, what would happen next and then confirming when it was done.

I've recommended you already and will continue to- well done and thank you for all your help.

Kind Regards,

Rob Pickering

Rob Pickering

Peter,

Just wanted to say thanks again for giving us a fantastic service and helping us chose a vehicle and colour that's absolutely amazing! We love it!

Kind Regards,

Andy & Lucy Minas

Andy & Lucy Minas

Stuart,

Thank you for a quick and easy order process. Sorted out in a day. My wife is very much looking forward to her new car.

Kind Regards,

Ian

Ian Johnson

Kieran,

The service which I have received was excellent. He kept me informed and promptly answered all my questions in a helpful manner.

I would not hesitate to recommend your company to anyone.

Naveed Zafar

Byron was professional and knowledgeable throughout and nothing was too much trouble. Can't speak highly or recommend him enough!

Dave Parker

This is my first time leasing a vehicle and Stuart has been absolutely fantastic in explaining and sourcing the best deal for my first car. Any question I've asked or change that I've asked for (within reason), Stuart has sorted professionally and quickly. The communication via the company is brilliant and the whole ordering process is simple and easy. I'm looking forward to receiving my car and would definitely recommend Total Motion to anyone. Stuart Conway deserves personal recognition from the company for his excellent service.

Stuart

Amelia,

Thank you so much for organising a car for my fastidious neighbour and dealing with him in such a professional and patient manner- he was really impressed!

I also want to thank you for the professional and friendly way you have dealt with the contract for my own car which is due for delivery shortly.

Gail Siddall

What a service, Stuart and Natasha are superb. Can't recommend these guys enough.

Simon Shakeshaft

Peter,

The Entire transaction was handled sensitively, professionally, enthusiastically and with a determination to get the best deal for me.

Thank You.

Ian Barrett

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