Car Credit: Finance Lease is a tax efficient option where the customer has two options. Firstly, they can pay for the total cost of the vehicle, which includes interest charges over a certain period or secondly, they can pay lower monthly rentals with a final payment, which is based on the anticipated resale value of the vehicle.
The responsibility for selling the vehicle at the end of its contract term is that of the customers and so potentially there can be a profit depending upon the amount of finance sill remaining with the car credit company. Therefore, by selling the vehicle, it means that it does not need to be returned to the leasing company.
In terms of businesses, although the ownership of the vehicle remains with the leasing company for the duration of the contract, the car does appear on the company balance sheet with the capital element of the outstanding rentals acting as the subsequent liability. The rentals paid can be offset against taxable profits, although a proportion of the payments relating to the excess value of the vehicle over and above £12000 are disallowed. A typical finance lease will consist of a 12-60 month contract with no mileage restrictions, an initial low rental fee and include VAT on rentals.
All Circumstances considered!
No Deposit required!
Buy your car from one of the UK largest dealers!
At Car Credit Assured we will search our large panel of finance lenders to ensure we provide the best car finance deal for you. Good or bad credit history? We can supply both the finance and the car for you. If you have CCJ’s, defaults, been discharged bankrupt or self employed we can help. Feel free to apply now!
All Circumstances considered!
No Deposit required!
Buy your car from one of the UK largest dealers!
At Car Credit Assured we will search our large panel of finance lenders to ensure we provide the best car finance deal for you. Good or bad credit history? We can supply both the finance and the car for you. If you have CCJ’s, defaults, been discharged bankrupt or self employed we can help. Feel free to apply now!
Car Credit Assured is authorised and regulated by the financial services authority. Applicants must be over 18 years of age. Credit is subject to status and income. Written details are available on request. Credit only available on cars supplied by Bristol Street Group Ltd and its subsidiary companies. Typical finance example; cash price £5,499, deposit £499, amount of credit £5,000, total charge for credit £2,799, total amount payable £8,298, payable by 59 monthly payments of £125, followed by one monthly payment (inc application fee) of £424.