Business Finance Lease
Finance Lease gives you the advantage of running a fleet without having to purchase the vehicles. At the end of the lease period the vehicle needs to be sold to a third party and you retain up to 99% of the sale proceeds. This refund can be used to fund the deposit of your next vehicle.
There is no large initial capital outlay leaving your capital free for more productive purposes.
E-Drive purchases the vehicle of your choice - using our fleet terms, having agreed with you the lease term, the monthly rental and a negotiated final value.
On termination of the contract, the vehicle can be sold, either by you or by ourselves, and the proceeds offset against the final outstanding value written into the lease. Should the proceeds exceed this value, you will receive the excess less any charges due.
The benefits to your business:
- Costs paid from income not expenditure capital.
- Fixed monthly rentals for the duration of the contract.
- Minimum initial expenditure, typically three months in advance.
- No capital tied up in a depreciating asset
- Rentals may be allowable against taxes, subject to HMRC rules.
- VAT efficient (50% of the VAT on all business rentals can be reclaimed 100% for commercial vehicles).
- A residual value payment can be included in the lease thereby reducing the monthly rentals.
- You will never take ownership of the vehicle as the car or van must be sold to a third party.
- You as the hirer also take on the administration and operating risk associated with the vehicle, including the road fund licence.
- The risk & reward is down to you as the hirer so if the proceeds less any charges exceed the residual value, you will receive the excess, but if they don’t you would need to pay the difference.