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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

The service was refreshing to say the least. Bilaal is very helpful and always comes back to you

Response back quickly, gave me options, and was polite.

Kind Regards,

Ayyub


Ayyub Patel

Stuart,

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


Kind Regards,

Leanne Chandler,

CMS-Midlands

Leanne Chandler

Marvin,

I am so thrilled with the car! It is everything I had hoped for, so roomy especially as my son and daughter-in-law are about to have twins, so I will be able to help them lots.

Your service has been brilliant, you, in particular, have been so patient with the process. The delivery man was charming. I will absolutely recommend you to others.

Kind regards

Charline

Charline Addison

The whole process was simple and smooth from start to finish, Kieran answered all my questions and left no stone unturned.

Usama Elmi

Just a THANK YOU!

Truck delivered all as promised, communication excellent.

Kind regards


Chris

Chris

Provided exceptional service and provided me with the Clubman at an amazing price.

I highly recommend Total Motion if you're looking to lease a vehicle at a great price. A very friendly team that were always happy to help me find the perfect solution.

Thanks a lot!

Jenny Cross

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

Simon Shakeshaft

Service and assistance throughout process to date from Bilaal has been first class. Assuming no issues in delivery dates and spec etc then all good! Thanks for all your help and will ensure details passed on should colleagues / friends that have similar requirements

Speed of response and flexibility have been perfect throughout. Pleasure to deal with.

Kind Regards,

Miles Burgess

Miles Burgess

Chloe,

I had been looking at new Jaguar F-Pace for a few weeks, but the prices from other leasing companies was putting me off.

I had a good conversation with Chloe. She delivered me a quote on a basic model and the fully spec'ed up model I ideally wanted. The price was less than what I was currently paying for my current car. I sent over the order the following day! She followed everything through with me, including the changing of my personal licence plate to the delivery date.

I couldn't ask for anymore! Thank you!

Chris Cain

Dear Marvin,

Thank you so much for your exceptional efforts to ensure that I received my car today. I know that it was a tall order but I am very pleased and all went according to plan today.

I know that people often don't seem to appreciate all the work that people put into these things but please believe me when I say that I am very, very grateful.

If you have a manager that you can pass this message on to, please do so - in this day and age people always forget to say when service is good.

Thank you so much.

Lia

Lia Copestake

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