Hire Services >Finance Lease

A finance lease accounts for depreciation and is dealt with on-balance sheet from an accounting viewpoint.

With a finance lease, customers take on the depreciation costs over the length of the contract. The vehicle is accounted for as though you owned it and the cost is included in your balance sheet as a fixed asset, even though the vehicle is always owned by VLS.

The lease contract ends with a final payment equivalent to the residual value of the vehicle.

This is normally managed through the sale of
the vehicle to a third party at the end of the agreement.

Benefits of finance lease:

  • Fixed monthly costs
  • VAT-efficient for most organisations
  • Additional services can be included
  • Low initial outlay
  • Provides an alternative credit line for funding
  • Single monthly invoice
  • Appears on lessee's balance sheet

Contact us to discuss how to fund your fleet.