How it Works: Finance Lease - FL

How it Works: Finance Lease – FL

Finance Lease - Yorkshire Fleet

Finance lease is a popular alternative to Business Contract Hire. It offers flexibility and tax advantages to eligible companies. This type of agreement is only available to business customers.

Speak to one of our experienced advisers to see if Finance Lease is suitable for your business.

Features and Benefits of Finance Lease

Improved cash flow
On balance sheet funding
No damage recharge
Accurate monthly budgeting
Fixed interest rate
Rentals allowable against taxable income
The funder reclaims the VAT on the original purchase of the vehicle, which reduces the customers rentals which are charged excluding VAT
50% of the VAT is reclaimable on the monthly payments (assuming an element of private mileage)
Where a vehicle is used solely for business, for example a pool car, 100% of the VAT is reclaimable
100% of the VAT is reclaimable on the monthly payments for all commercial vehicles

Initial Rental

Monthly Rentals

End of Contract

At the end of the contract you have 2 options:

1. You can sell the vehicle and retain 98% of the sales proceeds after you have settled the final rental (if applicable).
2. You can pay the final rental (if applicable) and pay 3% of the original invoice price per annum on a ‘peppercorn rental’ agreement. This allows you to continue to run the vehicle through your company, rather than disposing of the vehicle.

Your Yorkshire Fleet account manager will contact you 6 months prior to the contract end date to discuss your requirements.