The FleetPartners Finance Lease is one of the most simple and straightforward financing options when leasing a vehicle. As with an Operating Lease, the Finance Lease is a lease agreement where your business is able to lease a fleet of vehicles from FleetPartners for a fixed monthly repayment.
A Finance Lease is an agreement that features fixed monthly repayments over an agreed period of time. The finance lease agreement has all the contract details such as the residual value of the vehicle, the period for finance lease, the monthly lease payments and the depreciation rates for tax purpose. Once the lease has ceased, a predetermined residual repayment is made and the vehicle can be yours.
While your business retains the residual risk of these vehicles, there are also some advantages in using a Finance Lease: By changing the residual value, this solution enables you to set repayments according to your cash flow requirements, and gives you the potential to profit from a higher selling price than your residual value.
For complete package Finance Lease, FleetPartners maintains ownership of the vehicle over the lease term and until all payments have been made, that is either the last monthly rental (‘zero residual value’ agreement) or the outstanding balance (‘agreed residual value’). On receipt of the final payment FleetPartners transfers ownership of the vehicle over to you.
Financing under a FleetPartners Finance Lease can deliver operational benefits to your business:
- Tax benefits – the lease is tax deductible
- You get to start using the vehicle immediately
- Fixed monthly repayments
- Fixed interest rates throughout the term of the loan