Finance Lease

This is our most popular method of financial package for all companies. It suits every company for a number of reasons, mainly tax, and maximum manufacturer discount or support.

Many customers initally reject leasing since they have confused it with contract hire, which is where the vehicle is simply handed back. Also many customers mistakenly think contract hire involves no credit search, quite the opposite.

• Low deposits. Minimum 1 payment down, maximum 40% deposit from
  12 month to 7 years available
• VAT. All figures are subject to VAT which is paid monthly.
  VAT registered business reclaim the VAT quarterly via an annual statement.
• With or without a balloon.
  A balloon is a deferred amount of money, based on the future resale value of the vehicle.
  Balloons are not recommended for high mileage drivers such as taxi drivers or long distance couriers.
  Where the value of the vehicle at the end is less than the balloon, this shortfall is the responsiblity of the customer.
• Ownership. The van must be sold at the end of the lease to a third party. Many customers sell the van and then repurchase. This is fine but under no account should the vehicle then be depreciated on the same company stock!
• Get out clause. A lease may be ended at any stage, very similar to Hire Purchase.
• Extending the lease. Often refered to as  a "Peppercorn Agreement."  Customers may keep the van longer than the agreement for a sum normally eqivalent to one monthly rental per year.
• Sale Proceeds. Customers may normally keep 95 - 98 % of any sale profits. The sale may be at any time during the agreement.
  Sale profits can sometimes be quite substantial, hence the popularity of this method over contract hire for instance. Since balloons are normally set very conservatively the disposal profits for late well specified, well chosen colours are very often three figures plus.
• Over mileage penalties. None since by nature the vehicle is the customers but secured for finance.
  It is not advisable to have a large balloon if you do a large mileage!
• End of term damage penalty. None. It is your  vehicle hence a lower resale value is normally achieved