Finance Lease | Fulton Vehicle Leasing
Fulton Vehicle Leasing

Finance Lease

A simple explanation of Finance Lease.

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What is finance lease?

Finance lease is a popular agreement for businesses needing cars, vans and commerical vehicles where contract hire is not suitable. It offers flexibility and tax advantages to eligble companies who require one of more vehicles but don't have the accessible funds to pay them up front.

What are the benefits of finance lease?

Finance lease offers several benefits that make it an attractive option for leasing commercial vehicles for you business.

  • Outlay

    Low initial outlay

    The initial outlay for a finance lease is often less than a loan or buying outright, usually from only three monthly rentals, reducing business expenditure.

  • Fixed Monthly Rentals

    Fixed monthly rentals

    Finance lease offers fixed monthly rentals that will not change for the term of your contract, resulting in peace of mind and improved cash flow.

  • Balloon


    A finance lease can be tailored to you, with an optional larger rental at the end of your contract to reduce the monthly rentals further.


    Vehicle damages are not subject to fees at the end of the term, though the future value of the vehicle will naturally be effected.

  • No Excess Mileage


    Unlike contract hire, no excess mileage fees apply to finance lease, though the future value of the vehicle will naturally be effected.

  • VAT

    VAT benefits for your business

    If your business is VAT registered then the rental VAT can be reclaimed up to 100% on LCVs, maintenance and 50% on the finance element for cars

Is Finance Lease Suitable For Me?

Finance lease may not be suitable if you want to buy or own the vehicle. It is also worth knowing that you also would not be able to make pre-payments to shorten the contract, and if you want to change vehicle this would result in early settlement charges.

If you do not know what your predicted mileage will be or if you are concerned about the future value of the vehicle, finance lease may not be suitable for you. Restrictions may also apply if you intend to take the vehicle abroad or use it for specific business purposes.

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