When a car is out of your company’s budget but is a necessity, you need a finance lease, a VAT-free car financing method. In this car financing method, the moveable asset or simply the car is bought from a supplier; your company then pays an effective rental instead of a repayment.

Monthly rental for the car consists initial car cost, finance lease period, and residual value. One should only bear in mind though to stick to the mileage limit since this will be strictly taken against your residual value.

The lessee has full use of the leased car; however, he can’t own the car at the end of the lease. But the good thing is when the car is sold, a percentage of the sale is given to the lessee. But if you insist, then you can pay the car’s entire cost plus interest in monthly installments.

Now let’s head down to the benefits that this finance option offers:
low initial payment, flexibility in payment options, updated car models, VAT reclamation of up to 50%, tax allowances application for hire rental, worry-free maintenance, sales proceeds.

So next time you go shopping for the right car financing, you can add finance lease in your major options and drive on!