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