Finance Lease
What is a Finance Lease and how does it work ?
This form of leasing has been around for many years and is similar in many ways to contract hire. Many companies use this form of leasing to save tieing up their cash flow with capital purchases. The vehicle must be sold at the end of the agreement.
Key Benefits:
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Releases another line of credit.
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Classed as a rental.
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Low initial outlay.
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Reclaim VAT on rentals.
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You benefit from the profit once the vehicle is sold.
At SunriseLeasing we will never set the balloon payment higher than the predicted value of the vehicle at the end of the agreement. We WILL NOT knowingly put you into negative equity.
Other companies will do this to show you lower monthly payments. We try to make sure that you will not get any shocks at the end of the agreement.
If we estimate the future value of the vehicle to
be let's say £3500 ex vat we will set the balloon payment at £1000 to £500 below
this. We can also set the balloon payment zero, this is called a fully amortised
agreement. What this means to you is that once the vehicle is sold at the end of
the term you get 95% of the sale value ex vat. You cannot buy the vehicle. You
will never own the vehicle. Your old lease vehicle when you sell it becomes the
equity for your next vehicle.
There you go, deposit for your next vehicle!
PLEASE BE VERY AWARE THAT THERE ARE SOME COMPANIES OUT THERE WHO WILL OFFER EXTREMELY LOW MONTHLY PAYMENTS, WHAT YOU WILL NOT KNOW IS THAT THE FINAL PAYMENT WILL BE MORE THAN THE VEHICLE IS WORTH. WE WILL NOT DO BUSINESS IN THIS MANNER.
