Finance Lease is an agreement that offers the use of a vehicle to a business but without ownership. The main difference between this method of funding and Contract Hire is that the hirer takes on the risks and reward associated with re-marketing the vehicle at the end of the agreement.
The new vehicle is purchased by the funder and leased to the hirer based on the anticipated re-sale value of the vehicle at the end of the agreement (known as the ‘Estimated Sales Value’ or ‘ESV’), taking into account the age and predicted mileage of the vehicle. At the end of the agreement, the hirer can choose to extend the agreement, or to sell the vehicle to a third party – acting as sales agent for the funder.
Always speak with your accountant before deciding on the best form of fleet funding for your company as they will be able to advise on any tax implications based on your businesses’ own circumstances.
* All vehicle images and information on this site are provided by third parties and are for illustration and reference purposes only, they may not be accurate representations. Please see the vehicle brochure from the manufacturer for vehicle details.
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Lease Comparison Ltd
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LEASE COMPARISON LTD IS AUTHORISED BY THE FINANCIAL CONDUCT AUTHORITY. We are a credit broker and not a lender, which means we can introduce you to a limited number of finance providers, who may pay us a commission.
Lease Comparison Ltd is a company registered in England and Wales. Company number 0888 3152 │ BVRLA Leasing Broker Registration Number: 1965 │ Financial Conduct Authority Reference Number: 828564 │ ICO Registration Number: ZA126604 │ VAT Registration Number: 204078831 │ Registered office: 1-3 St Albans Hill, Hemel Hempstead, HP3 9NG.
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