If you're VAT registered, using a Finance Lease is a flexible and tax efficient way to buy your next van without breaking the bank. You choose the van but the finance provider retains ownership. You simply lease it for the agreed period and, at the end of this term you either:
1. Sell the vehicle to a third party and keep 99% of the sale proceeds
2. Pay a one-off secondary rental and continue to use your van for a further 12 months
3. Part exchange the vehicle and use your equity as a deposit on your next van
Cash Flow – you can use your van immediately whilst allowing payments to be made on a monthly basis, providing your business with better cash flow.
Repayment period flexibility – you choose a finance repayment period of up to 60 months.
Fixed monthly repayments – your monthly repayments are fixed for the whole term of the agreement.
Low monthly repayments – you choose the deposit you put down, but the more you pay, the lower your monthly repayments.
Tax advantages – if you're VAT registered, you can reclaim the VAT payments made within the monthly payments.
Tax relief – you can offset 100% of the monthly repayments against taxable profits
Mileage restrictions – No mileage restriction unless you opt for a terminal rental in which case only a mileage estimation is used.
Equity – you retain approximately 99% of the equity in the vehicle.