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: 0118 334 2112
THW Vehicle Leasing
Unit D Mandarin Court
THW Vehicle Leasing are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 628532
Registered in England & Wales with company number : 6245752 | Data Protection No : Z1712376 | VAT No : 851 7744 06
Registered Office : Unit D Mandarin Court, Hambridge Road, Newbury, RG14 5SQ
THW Vehicle Leasing is a trading name of THW Sales & Leasing Limited
THW Vehicle Leasing can introduce you to a number of finance providers, we may receive a remuneration if you enter into an agreement with them. THW Vehicle Leasing is a credit broker and not a lender. E & O E
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