Your business uses the vehicle while paying a rental rather than a repayment. The monthly rental is determined by the initial cost of the vehicle (excluding VAT), the period of the finance lease and the residual value (the estimated future value of the vehicle at the end of the finance lease period once depreciation is taken into account), plus interest.
Although you never take ownership, at the end of the finance lease contract a payment equivalent to the residual value is payable. Usually this means that the vehicle is sold and a proportion of the proceeds of the sale are returned to the lessee.
Most finance lease companies will offer a number of payment options to suit your cash flow. You can lower the monthly rental with a balloon payment at the end of the contract, or you can pay the entire cost in monthly rentals (normally referred to as a fully amortised Finance Lease), in which case you may be able to extend the finance lease with a secondary rental (sometimes called a peppercorn rental).
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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Registered Office : John Grose Group Ltd, Whapload Road, Lowestoft, Suffolk, NR32 1NN
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JGLeasing is a trading name of John Grose Group Ltd. Registered Office: Whapload Road, Lowestoft, Suffolk NR32 1NN Registered number 01491537. Authorised and regulated by the Financial Conduct Authority, reference number 311058. You can check this on the FCA’s website www.FCA.org.uk/register or by contacting the FCA on 0300 5008082. John Grose Group Ltd is a credit broker but not a lender. In the event a financial services complaint cannot be settled between us, you may refer to the Financial Ombudsman Service. This service is free to use. Their contact details are Financial Ombudsman Service, Exchange Tower, London E14 9SR; telephone 0800 0234567 or 0300 1239123; email firstname.lastname@example.org; and their website is www.financial-ombudsman.org.uk. In the event a non-financial services complaint cannot be settled between us, we recommend the National Conciliation Service as an organisation competent to deal with unresolved complaints. Their contact details are National Conciliation Service, 2 Allerton Road, Central Park, Rugby, CV23 0PA; telephone 01788 538317; email email@example.com
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