Selected all your options? Now click here >>
Quick contact

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).

Latest Tweets

See What Our Customers Think

Testimonials

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

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

Thank you for professional and efficient service in providing the Porsche Macan exactly as promised, on time and to specification.

Your service was greatly appreciated.

Regards

Philip Wildish

Philip Wildish

Stuart,

Thank you for an excellent service. Everything was great and spot on.


Kind Regards,

Leanne Chandler,

CMS-Midlands

Leanne Chandler

Dear Stuart,

Thank you for going the extra mile and getting the vehicle delivered as swift as possible. You are a credit to Total Motion, well done, keep up the good work and thanks again.

With Regards,

Ianto

Ianto Bellis

Just a THANK YOU!

Truck delivered all as promised, communication excellent.

Kind regards


Chris

Chris

I dealt with Kieran , who was very helpful , answered all my questions and made the process a smooth one!

Ive Mattheessens

Thought the A7 was a good car but this is just a different league!!

I feel like a super star in it!!!

Thank You,

Martin McDade-Smith

Martin McDade-Smith

Just wanted to advise a great experience. Thank you to Harjinder Singh Dhatt, he is a star and professional ambassador for Total Motion.


Kind Regards,

Alfred

Alfred Gother

This is the first time I have leased a vehicle, Bilaal made the whole process really easy and kept me fully informed all through the process. A really good first class service.

Kind Regards,

William Johnson

William Johnson

Newsletter Sign-up

Newsletter subscribe
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time. Close this message.