There are numerous benefits to acquiring a Drivelease Finance Lease which include:
Lower monthly costs and initial outlay: One of the main reasons why companies choose finance lease agreements is to avoid large capital outlay.
Flexibility: The majority of finance companies will offer a number of payment options to suit your cash flow. You can make deferred payments, lowering the monthly rental with a balloon payment at the end of the contract, or you can pay the entire cost in monthly instalments.
Latest vehicles: You will be able to access a wider choice of the latest prestige and performance vehicles that may otherwise have been unaffordable.
VAT payments: Up to 50% of the VAT payments can be reclaimed.
Balance sheet: A finance lease agreement allows you to show the vehicle on your balance sheet as an asset with outstanding rentals represented as a liability.
Hire rental tax allowances can also be applied for in some cases.
Sales proceeds: You can increase your equity by receiving a proportion of the sale proceeds at the end of the finance lease agreement.
There can also be some disadvantages to finance leases too. You will never take ownership of the vehicle as the car or van must be sold to a third party not named on the agreement. Another disadvantage is that the hirer also takes on the administration and operating risk associated with the vehicle, including the additional cost of annual road fund licence.