Nationwide Vehicle Contracts - Finance Lease
A guide for finance vehicle lease from Nationwide Vehicle Contracts. View the full guide here:
Published on: Mar 3, 2016
Transcripts - Nationwide Vehicle Contracts - Finance Lease
What is Finance lease?
Finance lease is a popular agreement for businesses needing
cars, vans and commercial vehicles where contract hire is not
You can choose to pay either the entire cost of the vehicle or opt
to pay lower monthly rentals with a final payment.
How could it work for your business?
• Your business will be able to use the car or van without facing
a high upfront cost of a new vehicle.
• Regular monthly payments
• VAT registered companies can reclaim up to 50% of VAT
Is my company eligible?
Finance lease is available to:
• Sole traders
• Limited companies
• Self employed people who are financially eligible.
The key features of finance lease
• Popular for business and commercial customers when
contract hire is not suitable
• Choice of paying entire cost of vehicle or being able to pay
lower monthly instalments with a final payment
• Vehicle can either be sold at the end of the agreement or you
can pay the outstanding balloon payment.
The key benefits of finance leasing
• Fixed payments
• Low up front costs
• Claim up to 50% of VAT on cars
• Tax advantages
• No penalty charges for additional mileage
• Receive 98% of sale proceeds if the vehicle is sold to a third
party at the end of the agreement
Considerations for finance leasing
• You will never own the vehicle
• Interest rates can vary on some contracts
• Vehicle must be insured with full comprehensive cover
• Operating risk associated with running the vehicle
What happens at the end of the
• At the end of the lease the vehicle can be sold to a 3rd party
• If sale price is below the agreed residual value, you are liable
to make a further payment
• You can pay outstanding balloon payment and operate the
vehicle under a peppercorn agreement
Looking for further information?
Check out the full guide here:
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