Leasing Info & Help
Finance Lease
A finance lease contract takes full ownership of the asset and rents the goods to you over a predetermined period. The finance company can claim the writing down allowances and convey this benefit to you by reducing the monthly payments. It is also worth noting that the purchase price being used to calculate the rental is the purchase price net of VAT. Thus, if you are looking to acquire a VAT qualifying asset, if leased the rental is calculated on the net price of the asset and not the gross price if funded by Hire Purchase.
As you are not the owner of the asset, you cannot sell the asset during the rental period. However, as you are generally covering the total cost and hire charges within the primary period, you will be entitled to a share of the sale proceeds should the leasing company allow you to sell on their behalf. Your share of the sale proceeds is usually agreed at inception and is typically 95-99%.
