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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

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

Ive Mattheessens

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

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

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

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

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

Simon Shakeshaft

Thank you for sorting out the new van! It drives like a ferrari!


Kevan

Kevan

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

Since my first contact with Bilaal he has been extremely helpful and I feel like he has gone above and beyond for me in all my questions and requests.

I have done, and will continue to recommend Total Motion Vehicle Management to friends and family.

Kind Regards,

Helen Lewis

Helen Lewis

Bilaal was extremely helpful, I really could not praise him anymore.

Very quick replies to all correspondence and always at the end of the phone to talk things through.

I would highly recommend Total Motion to anyone looking to lease a car the service was unparalleled to what I have received elsewhere in the industry.

Kind Regards,

Aaron Pitt

Aaron Pitt

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