What is Finance Lease
A Finance Lease or Car Lease is a commercial finance product which enables the customer to have the use of asset and the benefits of ownership, while the financier retains actual ownership of the asset.
Leasing a car may be a good idea for your business. Here's what you need to know about car leasing
The financier purchases the asset on behalf of the customer, who then leases the asset back from the financier and pays a fixed monthly lease rental for the term of the lease.
At the end of the lease the customer can either:
a) make an offer for the goods (which the financier can either accept or reject). Generally the offer is for the residual amount and this is generally acceptable to the financier.
Once the residual is paid on the lease the customer takes ownership of the asset; or
b) Trade it in for a new asset and payout the residual with the consent of the financier; or
c) re-finance (at the lenders discretion) the residual and continue the lease; or
d) return the goods to the financier.
The financier will sell the goods, generally at auction, and if there is a shortfall to the residual value amount the customer must pay this amount.
For more information or a free quote on a Lease for your business car or business equiment send us your details and our expert will call you to answer any questions