Finance Lease
Finance Lease
Who is it for?
Finance Lease is for VAT registered companies that wish to handle their own administration and maintain their fleet as a balance sheet asset.
Tell me more
Finance Lease is a straightforward rental agreement that offers significant tax advantages for your company, particularly if your business is VAT registered.
Unlike Contract Hire, this form of car leasing shows the vehicle funded on your Balance Sheet, hence your company will claim a write down allowance each year against Corporation Tax.
With a 'Balloon' style Finance Lease, you can reduce your monthly rentals even further, as the vehicles estimated resale value is taken into account when the rental payments are calculated. The estimated value is then offset to the end of the agreement, thus reducing the rental payments. At the end of your lease agreement, you must sell the vehicle to an unconnected third party.
With a Finance Lease your sales proceeds will first need to cover your outstanding 'balloon' payment and any balance will then be refunded to you with a minimal percentage of any profits payable to the finance company. Any shortfall remaining from the 'balloon', however, will be your responsibility to settle.
VAT is reclaimable in exactly the same manner as Contract Hire agreements.
Our Finance Lease plans include:
- Low initial deposit and fixed monthly payments.
- Free delivery and collection anywhere in the UK
- The contract length and mileage tailored to exact requirements.
- Optional breakdown and recovery service, with European cover.
- Optional Servicing Contract for a fixed monthly cost.
- Personal support and advice throughout your contract from Countrywide Vehicle Contracts.
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