Vehicle Finance Lease UK

If you want to keep the vehicle as an asset on your balance sheet then a Finance Lease is ideal. The VAT on the purchase price of the car is reclaimed by the Leasing company, lowering the overall cost of the asset. A Finance Lease is usually taken over three years with three rentals paid in advance and you can either pay for the whole vehicle over the period of the lease or to lower the monthly rental you can opt for a 'residual value' (or balloon payment). This recognises that the vehicle will have a value at the end of the lease which can be used to pay off the residual value.

You can choose any make or model of car or van for a Finance Lease but you will need to pay for your own maintenance and upkeep.