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.
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).
T: 0131 622 6425
Eastern Western Fleet Services
Edinburgh's Luxury Car Village
Registered Office : Eastern Holdings Limited, 8 Westerton Road East Mains Ind Estate Broxburn West Lothian EH52 5
| Company Reg No : SC038211 | Data Protection No : Z5969663 | VAT No : 269233051 |
EW Fleet Services is a trading name of Eastern Western Motor Group Ltd which is authorised and regulated by the Financial Conduct Authority – we are a Credit Broker not a Lender. Our Firm Reference Number is 310505.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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