Finance Lease Explained

How does it work?

• We will agree with you the number of advance rentals or deposit and this is combined with the agreement duration and the optional balloon payment will determine the amount of your monthly payment
• Duration between 12 - 48 months
• You sign an agreement, pay the deposit and make the monthly direct debit payments
• During your contract we will ask for the mileage details to help you avoid unnecessary over mileage charges and will provide timely reminders of required vehicle services
• Towards the end of your agreement we'll write to remind you that the contract is coming to the end and that any optional balloon payment will be due
• You cannot take ownership of the vehicle but at any point you can sell the vehicle to an unconnected third party to bring the term to an end but you must settle any outstanding amounts
• Alternatively at the end of the term you can request a secondary period (peppercorn agreement) which is equal to one month's rental payable per year

Features and Benefits

1. A fixed monthly payment, allowing you to budget with confidence
2. Record on balance sheet
3. Capital allowance can be claimed
4. Potential for profit on resale

If VAT registered you may be able to recover:

• Rental payments can be offset against taxable profits
• If your business is VAT registered you can reclaim 100% of the VAT on the rental if the vehicle is used exclusively for business (includes all vans) or 50% of VAT on the finance element of the rentals if the vehicle is also used privately.

Optional Products & Services

Maintenance and Servicing

If you want to know more about how contract hire can benefit you and or your business, why not get in touch with our Local Business Sales Consultant at W R Davies Citroën who can explain all the funding options available.

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