Business Leasing Products
At Yorkshire Fleet, we understand that every business operates differently.
Our experienced account managers will work with you to understand your requirements and offer the most tax efficient, cost effective business car leasing solutions that work for you.
Whether you manage a small team or a large fleet, we’ll help you find the right vehicles to keep your business moving smoothly.
Business Leasing Products Available
Business Contract Hire
The most common form of lease agreement, and is most suitable for Sole Traders, Partnerships and Limited Companies. It provides you with a tax efficient way of running a vehicle for a fixed cost over a pre-determined period.
At the end of the agreement the vehicle is collected without any further obligations.
Finance Lease
A popular funding option for commercial vehicles (cars can be financed as well).
This is a pure funding product and, although it is possible to have a balloon payment, there is no option to return the vehicle at the end of the agreement.
Contract Hire vs. Finance Lease
| Aspect | Contract Hire | Finance Lease |
|---|---|---|
| Ownership | The finance company (funder) owns the vehicle and keeps responsibility for its risks and benefits | The finance company (funder) owns the vehicle, but the business assumes most of the risks and rewards, much like ownership |
| Balance Sheet |
Typically kept off balance sheet and recorded as a rental expense |
Both the vehicle and the liability appear on the business’s balance sheet |
| Payments |
Fixed rentals cover depreciation, financing, and any included service package |
Rentals are fixed, including both cost and interest |
| Servicing |
Option to include as part of lease agreement |
The business (you) assumes responsibility |
| Damage Wear & Tear |
Damage recharges apply. Costs for excess wear and tear, additional damage, and mileage are billed directly to the customer |
No direct damage charges apply. The business (you) bears the resale/residual risk—if the vehicle is damaged, its resale value decreases |
| End of Term Options |
Vehicle can be handed back, provided condition and mileage limits are met, with no further obligations |
After settling the final rental, you can sell the vehicle and keep 98% of the proceeds or pay 3% of the original invoice per year under a ‘peppercorn rental’ to keep using it. |
| Residual Value Risk |
Responsibility of the finance company (funder) |
Responsibility of the business (you) |