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).
* Affordable car leasing and van lease services for both business and personal contract hire in Northampton. If you need to lease a car or van fast, call our Northampton team today for a great deal.
T: 0800 612 8901
F: 01604 570700
Silverstone Fleet Management
The Old Hay Barn
Preston Lodge Court
Registered Office : Office 5, The Old Hay Barn, Preston Lodge Court, Preston Deanery, Northampton, NN7 2DS
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Silverstone Fleet Management is a trading name of Silverstone Corporation Limited. Silverstone Corporation is a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 674485
Silverstone Fleet Management are a member of the British Vehicle Rental and Leasing Association (BVRLA). Registered No : 1918
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