Your business uses the vehicle while paying a rental rather than a repayment. The monthly rental is determined by the initial cost of the vehicle (excluding VAT), the period of the finance lease and the residual value (the estimated future value of the vehicle at the end of the finance lease period once depreciation is taken into account), plus interest.
Although you never take ownership, at the end of the finance lease contract a payment equivalent to the residual value is payable. Usually this means that the vehicle is sold and a proportion of the proceeds of the sale are returned to the lessee.
Most finance lease companies will offer a number of payment options to suit your cash flow. You can lower the monthly rental with a balloon payment at the end of the contract, or you can pay the entire cost in monthly rentals (normally referred to as a fully amortised Finance Lease), in which case you may be able to extend the finance lease with a secondary rental (sometimes called a peppercorn rental).
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 029 2022 6406
30 Kingsland Road
Bay Vehicles Ltd trade under Hanborough Enterprises Ltd’s brand name of Platinum Funding, part of the Bridle group of companies. We are an Appointed Representative (Firm Reference Number 498883) of Hanborough Enterprises Ltd who is authorised and regulated by the Financial Conduct Authority for consumer credit activities (Firm Reference Number 631448). You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. We are an independent vehicle finance broker and we operate with a panel of carefully selected funders. We may receive commission and/or other benefits from the finance provider if you enter in to an agreement with them. Bay Vehicles Ltd registered office and trading address is 30 Kingsland Road, 5 Exeter Close, Canton, Cardiff, South Glamorgan CF5 1HU, Vat no 527 8788 40, Data Protection Licence ZA151133
We are a Credit Broker and not a Funder or a Lender
Pictures are for illustration only and may not be the exact model. Finance is subject to status. Calls are recorded for training and quality purposes
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