Horizon Vehicle Leasing Limited





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info@horizonvehicleleasing.co.uk

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Finance Lease

Finance Lease - Suitability explanation

Finance Lease (FL) is often used for LCVs (light commercial vehicles) and is a fixed term rental agreement where the vehicle remains the property of the finance company and you have the use of the vehicle. You will pay an initial rental followed by subsequent monthly rentals and sometimes followed by a larger final rental which will be based on the expected value of the vehicle. Rentals are subject to VAT. Finance Lease (FL) differs from Contract Hire in that at the end of the agreement you must sell the vehicle to a third party. You (the Lessee) will receive a large proportion (usually 97.5%) of the sale price (less the final rental if applicable) with the balance of the sale proceeds (usually 2.5%) being paid to the finance company (the Lessor). If the agreement has a large final rental and the sale price is less than the final rental, you will be required to make up the difference.

Finance Lease may not be suitable for you in certain circumstances, for example:

  • If you wish to own or buy the vehicle 
  • If you might need to change your vehicle early (early settlement will incur charges)
  • If you would like to shorten your period of hire by pre-paying
  • If you want to lower your monthly rentals by including a final rental and do not know what your predicted mileage will be
  • If you are concerned about the risk in loss of future value/depreciation
  • If you plan to export the vehicle or use abroad for extended periods

Benefits of Finance Lease: 

Horizon Vehicle Leasing Limited are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 623486

Registered in England & Wales with company number : 8965212 | Data Protection No : ZA071616 | VAT No : 193011925

Registered Office : Horizon Vehicle Leasing Limited, 200 Eureka Park, Upper Pemberton, Ashford, Kent, TN25 4AZ

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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