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Finance Lease is a flexible form of fleet funding.
This lease can incorporate a balloon payment to reduce
monthly rentals although carries more risk at the
end of the contract, depending upon residual values.
Vehicles are shown on the balance sheet, although
we provide guidance on the setting of the final “balloon” payment.
- Fixed repayment costs
- Monthly payments can be lower, as they may not
be based on the full depreciation cost
- Can Include a balloon payment at the end of
contract
- Improves key financial ratios, such as gearing
- VAT on lease rentals can be claimed back on
assets used for business purposes. (restrictions
apply to reclaiming vat on cars)
- Benefit from Automotives’ buying power
- Reduced administration
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