Would I be better off with an H.P. or even a Cash Purchase? No. Finance Lease is recommended because: • All payments, including deposit are tax deductible, which is always more tax efficient than claiming capital allowances available when cash or H.P. purchasing. • You benefit from massive fleet discounts only available on Finance Lease. • You gain from improved cash flow with VAT being spread over the whole of the agreement, rather than a large single payment paid with the deposit. • No mileage or condition penalties. Do I have any value in the vehicles? Yes, just like a purchase agreement you build up equity in the vehicle through the period of the agreement, so that when you change your vehicle you have money to start off your next lease. Can I pay a higher or lower deposit? Yes. It is possible to increase or reduce deposits within certain minimum & maximum amounts; this will decrease or increase your payments accordingly. Can I lease over a different period? Yes. Leases run from 18 months up to 5 years depending on your requirements. Do I have to have a balloon final payment? No. You can request a full payout lease. Can I have extras on my vehicle? Yes. You can request additional accessories to be put on the vehicle to suit your needs. These will be supplied and fitted prior to delivery. The cost can be added to the cost of the lease or paid for in the deposit. Why are the lease payments so low? In most cases you benefit from two discounts. One is the maximum retail discount and the second is a fleet discount, volume related and linked to the purchasing power of ourselves and our funding companies. What are my options at the end of the lease? You have several options [the first listed here is the most popular]: - You can swap the vehicle in for another one. In this instance the vehicle clears its own balloon and you take the value left over to start your next lease. - Sell the vehicle on behalf of the finance company and keep any profit made after clearing the finance company balance/interest. - Spread the balloon payment over a further period. Can I sign write the vehicle? Yes. The sticker sort is recommended so that it is easy to return the vehicle to its original paintwork on disposal. Can I settle early? Yes. But very early settlement is not recommended. This is because you have not had time to build up any equity. Final Points Ensure you check any competitors quotes to make sure the details are like for like. Unfortunately some of companies are actively failing to make customers aware of the fact that although their contract is not restricted on mileage it is used to calculate the balloon payment. So whilst the lowest payment may seem attractive, if you’re doing 30k miles pa and the balloon is set using 10k, you WILL have a situation where the vehicle is worth less than the final payment. We at Vanarama Manchester West will of course provide you the same quote for comparison purposes but our advice is always be as realistic and accurate as possible. The balloon payment is always payable and while there will be an option to refinance this amount, there is never the option of just handing it back. Finance lease is an excellent product, but like any financial contract you should always understand the terms and conditions before you enter to into it. About the Author Robert Dadzie is the business manager at Vanarama Manchester West. Vanarama Manchester West part of the Autorama Group, is a leading provider of commercial vehicle leasing in the Greater Manchester Region. For further information on leasing or to obtain a quote, please visit www.vanaramamanchesterwest.co.uk Alternatively you can contact Robert Dadzie on 0161 401 0541 or email robert.dadzie@vanarama.co.uk
Contact Number: 0161 401 0541. Email: robert.dadzie@vanarama.co.uk
I am the Business Manager for Vanarama Manchester West. I am a commercial vehicle leasing expert…
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