Operating Lease is a solution for those who want to drive one of our vehicles over a fixed term, with lower monthly rentals and without the worries or commitment of ownership.
Simply return the vehicle with nothing more to pay, subject to meeting our Vehicle Return Standards. As vehicle condition, excess mileage and other charges may be payable.
How Operating Lease works:
At the start of your agreement you pay an agreed number of advance rentals upfront. Your monthly rentals are based on the difference between the initial value of the vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicle’s value is repaid, this avoids a large initial outlay and keeps monthly payments lower.Product features:
- No large initial deposit.
- Pay an agreed number of advance rentals upfront.
- Fixed regular monthly rentals (that include VAT) means you can easily budget.
- Rentals are based on your annual mileage agreed at the start of your agreement.
Additional features for business users:
- Capital expenditure is eliminated.
- Your business gains an additional line of credit.
- Rentals are allowable against taxable profits (proportionally).
- VAT is reclaimable depending on usage (proportionally).
- The vehicle is not shown as an asset on the balance sheet.
At the end of your agreement:
Return your smartSimply return the vehicle with nothing more to pay, subject to meeting our Vehicle Return Standards. As vehicle condition, excess mileage and other charges may be payable.