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Finance Lease

Finance Lease

What is Finance Lease?

Finance Lease is a tax efficient option available to organisations where you choose to pay either the entire cost of the vehicle, including interest charges, over an agreed lease period or opt to pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle.

This contract is not available with maintenance options.

However our Leasing Companies do allow a balloon rental which is based on their calculated future value based on term and anticipated mileage. This allows you to budget more effectively.

Who owns the vehicle?

The vehicle is registered in the Lessor's name (Leasing Company) initially unless it is a USED vehicle.

The vehicle is registered directly to the Leasing Company who will provide the RFL for the life of the contract, this will be recharged back to you after the first year RFL expires.


This contract is designated a ‘loan agreement’ and any default in payments may result in repossession.

How does the balloon option work?

This depends on what you decide at the end of contract. If a final rental balloon is included in the contract this will become due and payable upon expiry of your contract. Should you wish to re-finance the final rental the Leasing Company requires a minimum 28 days notice prior to expiry of the contract original term.

Is Finance Lease subject to VAT?

All rentals are subject to VAT and as such should government at the prevailing rate.

You are able to claim 50% of the VAT on cars & 100% on commercial vehicles (subject to being VAT registered).

What is the initial outlay?

It is normally three rentals in advance.

What Payment Options do you have with Finance Lease?

There are 3 different Payment/Rental Profiles which support this product:

  • Terminal Pause
    With a 36 month contract, you will be asked to pay 3 rentals in advance, followed by 33 monthly rentals that are then followed 2 months where no rentals are due before the end of the contract.
  • Spread rentals
    This is the usual payment profile resulting in a lower rental than 'terminal pause' but the same length of contract and is 3 rentals in advance followed by 35 monthly rentals with the contract ending in month 36.
  • Enhanced deposit
    This is used when you want to put a lump sum down as an initial payment or have a part exchange you wish to use against a deposit; it has the effect of reducing the monthly rental. If you take out a 36 month contract, you will pay 1 rental (no less than an equivalent 3 rentals in advance) followed by 35 monthly rentals, the contract ends in month 36.

Can I have a Service & Maintenance on this contract?

No this contract does not come with a service and maintenance option, you are responsible for adhering to the manufacture servicing parameters. Failure to follow these could invalidate the Manufacturer’s warranty on the vehicle.

Does Leasing Company insure the Finance Lease Vehicle?

No. It is your responsibility to insure the vehicle. Please see the Terms & Conditions of the contract.