Finance Lease Similar to contract hire and ideal for VAT registered businesses that want to handle the administration of their vehicles. The lessee will assume responsibility for selling the vehicle at the end of the contract (instead of it being collected by the leasing company) usually to settle a pre-agreed residual payment. The lessee can potentially profit on this sale, if the sale amount exceeds the residual payment. Shown on balance sheet. Highlights - AT on rentals
- 12- 60 month contracts
- Any vehicle - new or used ( up to 12 months old)
- No mileage restrictions (although the lessee will ultimately pay for the full depreciation of the vehicle while in his possession)
- Low initial rental (usually equivalent to three monthly rentals)
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