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12th Dec 2018 - By providing honest and independent vehicle and finance solutions; KeyFleet makes our clients lives easier by understanding their needs and developing long term relationships whilst saving them time and money.

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Finance Lease

Finance Lease is a popular funding option for commercial vehicles or vans where Contract Hire is not always suitable or the best option.

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.

Advantages:

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • A fixed interest rate is available on some contracts
  • No damage recharge as you are responsible for disposal of the vehicle
  • Finance lease is a very popular choice for VAT registered companies and businesses as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use). On contracts with maintenance the service element VAT is 100% recoverable
  • Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for cars with a CO2 output of 130g/km or below, there is currently no disallowance
  • Reduced administration
  • On-going advice and support
  • Optional full maintenance package with breakdown rescue cover
  • Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages:

  • You will never own the vehicle as the vehicle must be sold to a third party as the end of the agreement
  • Operating risk associated with the vehicle
  • Interest rates can vary on some contract
  • You must have fully comprehensive vehicle insurance

More Information on Finance Lease:

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).

Check out our current special offers below...

Business contract hire Peugeot 2008, SUV / 4x4
Peugeot 2008 SUV
1.2 PureTech 110 Allure 5Dr Manual [Start Stop]
£150.48 + VAT monthly rental
£902.88 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
1.2 litre Petrol Manual
+ compare
Business contract hire Renault Clio, Hatchback
Renault Clio Hatch
0.9 TCe 75 Iconic 5Dr Manual [Start Stop]
£143.73 + VAT monthly rental
£862.38 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
0.9 litre Petrol Manual
+ compare
Business contract hire Land Rover Range Rover Evoque, SUV / 4x4
Land Rover Range Rover Evoque SUV FWD
2.0 eD4 150 SE Tech 5Dr Manual [Start Stop]
£292.44 + VAT monthly rental
£1754.64 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 48 months
Rental profile: 6 + 47
Annual mileage: 10000
2 litre Diesel Manual
+ compare
Business contract hire BMW 5 Series, Saloon
BMW 5 Series 520 Saloon
2.0 d 190 M Sport 4Dr Auto [Start Stop]
£333.65 + VAT monthly rental
£2001.90 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
2 litre Diesel Automatic
+ compare
Business contract hire Mercedes-Benz A Class, Hatchback
Mercedes-Benz A Class A180 Hatch
1.5 d 116 AMG Line 5Dr 7G-DCT [Start Stop]
£244.83 + VAT monthly rental
£1468.98 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
1.5 litre Diesel Automatic
+ compare
Business contract hire Vauxhall Crossland X, SUV / 4x4
Vauxhall Crossland X SUV
1.2 81 Elite Nav 5Dr Manual
£173.20 + VAT monthly rental
£519.60 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 3 + 35
Annual mileage: 10000
1.2 litre Petrol Manual
+ compare
Business contract hire Mercedes-Benz C Class, Saloon
Mercedes-Benz C Class C200 Saloon
1.5 198 Sport Premium 4Dr G-Tronic+ [Start Stop]
£271.38 + VAT monthly rental
£1628.28 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 8000
1.5 litre Petrol Automatic
+ compare
Business contract hire Renault Captur, SUV / 4x4
Renault Captur SUV
0.9 TCe 90 GT Line 5Dr Manual [Start Stop]
£160.52 + VAT monthly rental
£963.12 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
0.9 litre Petrol Manual
+ compare
Business contract hire BMW 4 Series, Coupe
BMW 4 Series 420 Coupe
2.0 i 184 M Sport 2Dr Auto [Start Stop]
£314.42 + VAT monthly rental
£943.26 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 3 + 35
Annual mileage: 10000
2 litre Petrol Automatic
+ compare
Business contract hire Mercedes-Benz C Class, Saloon
Mercedes-Benz C Class C220 Saloon
2.0 d 194 AMG Line Premium 4Dr G-Tronic+ [Start Stop]
£293.40 + VAT monthly rental
£2640.60 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 9 + 35
Annual mileage: 10000
2 litre Diesel Automatic
+ compare
Business contract hire Renault Captur, SUV / 4x4
Renault Captur SUV
0.9 TCe 90 GT Line 5Dr Manual [Start Stop]
£147.47 + VAT monthly rental
£1327.23 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 9 + 35
Annual mileage: 8000
0.9 litre Petrol Manual
+ compare
Business contract hire Jaguar F-PACE, SUV / 4x4
Jaguar F-PACE SUV AWD
2.0 d 180 R-Sport 5Dr Auto [Start Stop]
£340.71 + VAT monthly rental
£3066.39 + VAT initial rental
Business contract hire
Contract term: 48 months
Rental profile: 9 + 47
Annual mileage: 10000
2 litre Diesel Automatic
+ compare

Have you seen our latest blog post?

Big savings for fleet leasing with KeyFleet’s “Marketplace service

KeyFleet provides the most competitive contract hire and leasing quotes for UK businesses As... read more

Posted on 22nd February 2018 at 11:38 AM

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