Flexible Vehicle Funding for Businesses
Finance Lease is a tax-efficient and flexible way for businesses to fund vehicles without the need for large upfront payments. Unlike traditional leasing, Finance Lease gives you the opportunity to benefit from the vehicle’s residual value while keeping it off your balance sheet.
At the end of the lease, you can either sell the vehicle to a third party and keep a portion of the sale proceeds or extend the lease at a reduced cost. This makes Finance Lease a great option for businesses looking to maximize cash flow while maintaining control over their fleet.
How Does Finance Lease Work?
- Choose Your Vehicle – Select the car or van that suits your business needs.
- Set Your Terms – Agree on the lease period (typically 24–60 months) and decide whether to include a final balloon payment.
- Fixed Monthly Payments – Make regular payments over the lease term, covering the vehicle’s depreciation.
- End of Term Options –
- Sell the vehicle to a third party and retain a percentage of the sale price.
- Extend the lease at a lower monthly cost.
Unlike Contract Hire, there’s no obligation to return the vehicle to the leasing company.
Why Choose Finance Lease?
✔️ No Large Upfront Costs – Free up working capital with low initial payments.
✔️ Off-Balance Sheet Funding – The vehicle doesn’t appear as a liability on your company’s balance sheet.
✔️ Tax Efficiency – VAT-registered businesses can reclaim up to 100% of VAT on commercial vehicles and claim monthly payments as a business expense.
✔️ Flexible End-of-Term Options – Choose to sell the vehicle and keep a portion of the proceeds or extend the lease at a minimal cost.
✔️ No Mileage Restrictions – Unlike Business Contract Hire, Finance Lease has no mileage limits, making it ideal for high-mileage users.
✔️ Better Cash Flow Management – Spread costs over time with fixed monthly payments.
✔️ Own the Vehicle Without Technically Owning It – While the vehicle remains the property of the leasing company, you have full use of it without the risks of outright ownership.
Who is Finance Lease For?
✅ Businesses that want flexibility in how they manage their fleet at the end of the lease.
✅ High-mileage users who need a leasing option with no mileage restrictions.
✅ VAT-registered businesses that want to reclaim VAT and benefit from tax-deductible payments.
✅ Companies that want to maximize cash flow while keeping vehicles off their balance sheet.
However, if you want to simply return the vehicle at the end of the term with no resale responsibility, then Business Contract Hire (BCH) might be a better option.
Get a Finance Lease Quote Today!
Looking for a tax-efficient way to lease your next vehicle? Contact us today to find out how Finance Lease can work for your business.
📞 Call us: 01908 262 662
📧 Email us: sales@webcars.co.uk
LVC Central Ltd is a credit broker not a lender and is authorised and regulated by the Financial Conduct Authority -Reference number: 718938. We may receive a commission payment from the finance provider, one of our selected panel of funders. Terms and conditions are available on request. webcars is a trading style of LVC Central Ltd. Registered in England Number 3102865. Registered Office: 2 Cosgrove Road, Old Stratford, Milton Keynes MK19 6AF. BVRLA membership number: 2126