Finance Lease

Ideal for commercial vehicles with higher than normal wear and tear



With Finance Lease the vehicle is hired to you for a set period of time but, unlike many other types of vehicle funding, there are no restrictions on how the vehicle is used or the number of miles that can be driven during the contract term. For companies who run regular vans, or other specialist commercial vehicles, it can often prove to be a better form of van finance than Business Contract Hire due to the fact that there are no end of contract vehicle damage fees or wear and tear surcharges.

Key benefits:

  • Tax efficient, with up to 50% of the VAT being reclaimed (this is true for most VAT registered companies, but please take appropriate financial advice before making a final decision)
  • Flexible payment options, with lower monthly payments and a higher balloon or visa versa
  • On balance sheet accounting of the asset, with remaining payments appearing as a liability
  • No usage restrictions or wear and tear surcharges

How it works:


Finance Lease could be described as a hybrid of vehicle leasing and Hire Purchase. Although you rent the vehicle from a leasing company, unlike Business or Personal Contract Hire, there are no restrictions to the number of miles driven, or the way in which the vehicle is used.

At the end of the contract you can choose to pay a pre-agreed secondary rental, a one-off balloon payment, or sell the vehicle a third party. And, if the vehicle sells for a higher than anticipated amount then you could receive a percentage of the profits.

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