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Finance Lease

Finance

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.

Finance Lease is simple, cost effective and commonsense so why not get in touch with City West Commercials Group Finance Manager: Paul Ridout for further information on 08451208274 (lo-call)

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