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: 023 8009 0019
New Car Contract
Unit 25 Acorn Business Park
YRAM Solutions Ltd t/a New Car Contract is an appointed representative of Auto Protect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 312143 ) and which is permitted to advise on and arrange general insurance contracts. YRAM Solutions Ltd is authorised and regulated by the Financial Conduct Authority for consumer credit activity and our registration number is 620132. All finance is subject to status and income. Written Quotation on request. We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.
Registered in England & Wales with company number : 07809250 | Data Protection No : ZA084908 | VAT No : 121 9086 30
Registered Office : Unit 25 Acorn Business Park, Empress Road, Bevois Valley, Southampton, SO140JY
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