Finance Lease

 

 

With a Finance Lease agreement, a vehicle is hired to you for a fixed period without the option of ownership. At the end of the contract, the proceeds from the sale of the vehicle, less a small fee, are returned to you. The basic details are:

  • You agree an initial rental
  • You pay monthly or quarterly for the use of a Mercedes vehicle over an agreed period.
  • At the end of the agreement the vehicle must be sold on to an independent third party. We will invoice the third party on your instruction and then return 95% of the sale price to you.
  • Alternatively you may return the vehicle to us. We will then sell it and return 95% of the net sale proceeds to you, after deductions and collection fees.
  • You can choose to pay a final lump sum to reduce the regular rentals.

There are many advantages to a Finance Lease deal:

  • You have use of the vehicle without a large capital outlay
  • Improved cash flow with fixed monthly rentals
  • VAT on rentals is reclaimable
  • Rentals are allowable against taxable profits
  • On balance sheet
  • Your business could benefit from the net sale proceeds
  • Optional balloon payment will reduce your monthly/quarterly rentals
  • An additional line of credit
  • Option to extend at a peppercorn rental
 

Useful Links

> HP (Hire purchase)

> Agility PCP

> Contract Hire

> Operating Lease

> Credit Application Form

Useful Links:

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Parts Enquiry
Sales Enquiry
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