Your vehicle is hired to you for a fixed period of time without the option of ownership. Your payments cover a percentage of the vehicle costs plus the finance charges. At the end of the agreement, the proceeds from the sale of the vehicle less a small administration fee are returned. You can also choose to pay a final balloon payment to reduce your monthly payments.
Benefits to you:
Fixed Rate
Use of the vehicle without large capital outlay
Improved cash flow with fixed monthly rental
VAT reclaimable (depending on usage)
Rentals allowable against taxable profits
Your business could benefit from the net sale proceeds
