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.
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)