10 benefits of commercial vehicle finance lease with a balloon

10 benefits of commercial vehicle finance lease with a balloon

• The VAT on the monthly rentals is fully reclaimable
• Your business capital is not tied up in a depreciating asset
• VAT is spread across all of the payments, whereas with purchase agreements all VAT is paid up front at the commencement of the term
• All VAT payments are claimed back if registered – if not registered, offset it against tax
• Rentals are 100% tax deductible: reduce your costs and get back up to 40% of all payments – including your deposit!
• Benefit from low deposits and monthly payments (see 7.)
• To reduce payments, offset some vehicle capital to pay at the end of lease
• The payment s are fixed for the entire agreement
• You can settle finance lease early like standard loan
• There are no penalty charges for additional mileage or damage at the end of the agreement

Jonathan Lewis continued;

“Finance lease with a balloon is VAT beneficial option, with lower monthly rentals during the lease period and a final payment at the end of the agreement which is pre-determined, based on the forecasted resale value of the vehicle.

“If the balloon is set with care, there is no reason why finance lease can’t be a perfect solution for many companies who want to get the best of both worlds when it comes to funding their commercial vehicles.”