Finance Options - Finance Leasing
 This
can be a cost effective option if you are looking for minimum
outlay, tax benefits, but do not want eventual ownership of
the vehicle.
Rentals can be paid monthly, quarterly or annually throughout
the agreement which is based on the estimated useful life
(normally 2 - 4 years). You may also reduce the monthly payments
by making a "balloon" payment at the end of the
agreement.
Financing costs are calculated on the VAT exclusive amount
significantly reducing your monthly payments.
The vehicle
is classed as a balance asset during the agreement, allowing
you to offset the rentals against taxable profit.
If the car is used exclusively for business you may reclaim
100% VAT. If the car if also used privately, 50% is recoverable.
On disposal of the vehicle the bulk of the sale proceeds
will be refunded to you as a rebate of rentals. This rebate
will attract VAT.
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