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).
* 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.
T: 01983 666100
Spear Leasing Ltd
3 Langley Court
Isle of Wight
Spear Cars Ltd TA Spear Leasing Ltd are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 811773
Registered in England & Wales with company number : 11351937 | Data Protection No : Applied and Awa | VAT No :
Registered Office : Spear House 3 Langley Court, Pyle Street, Newport, Isle Of Wight, United Kingdom, PO30 1LA
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