Finance Leasing A lease covering only the finance element of the vehicle and where the lessor (finance company) does not guarantee the residual value. The lessee (you) will take the risk of the depreciation (loss of value) over the term The vehicle must be shown on your company balance sheet.

Benefits Things you need to know Pure and simple financing agreement with a flexible rental structure to suit your needs, however you never own the vehicle. Taxation and VAT benefits the same as contract hire. Shown as a company asset on your balance sheet. You share in the risk and reward of the vehicle running costs including disposal. There will be a charge if you return the vehicle early. Not all the rentals you pay can be offset against your company profits, as there is a sliding scale restriction on the allowances for more costly cars. All vehicle running costs including the risks are yours.