Most popular form of financing providing fixed cost monthly rentals while avoiding the financial risk of owning vehicles. A contract hire agreement means no need to find the initial capital to purchase the car. There are many benefits to contract hire:
This type of leasing contract is well suited for businesses looking to add more than one vehicle to their business. If you don't have the capital to purchase your new business car or van outright, finance leasing is for you. this leasing process is similar to the above Contract Hire but has more freedom for your business.
The benefits of ownership with minimum deposit and maximum flexibility, more suited to non-VAT registered business users:
Finance Lease offers end contract flexibility, for those customers who might like to retain the vehicle. Finance Lease combines many of the benefits of Contract Hire and Lease Purchase. A finance lease is a VAT-efficient method of financing a vehicle that is usually accessed by VAT-registered companies.
Because it is a hire product, VAT is paid on the rentals which can help cash flow.
Once payments have been completed, the hirer can sell the vehicle to a 3rd party and retain 100% of the sales proceeds.
• Fixed monthly rentals for ease of budgeting
• Lump sum or fixed number of rentals as advance payment
• Option to extend agreement into a ‘secondary' period for a nominal annual fee
• Option to include a deferred sum/final ‘balloon' payment to keep monthly costs low
• Same tax relief as Contract Hire
• 50% VAT usually reclaimable on cars
• 100% VAT usually reclaimable on LCVs
If you have any finance lease enquiries on our range of models, please contact West Way Leasing team on 0844 387 3003.