Why flexi leasing a vehicle from EuroHireDrive can be an ideal option for you and your business especially during the current economic circumstances

• Flexi leasing for business

  Flexi lease is ideal for those that want a return of capital at lease end and cost effective motoring with mileage limits to suit you and your company best. Flexi lease attracts full fleet discounts making this method of funding for business users well worth considering.

  Flexi lease is also a good option for high mileage cars, commercials vehicles, and in particular specialist’s vehicles and those that are used for hard work that tests the vehicles depreciation curb over the lease period.

  Lease agreements allow use of a vehicle without ownership, but still offers the return of all the asset value achieved from the sale, or the majority of the sale proceeds less a percentage to the finance companies in some instances.  

  Advantages of Flexi lease

  • Affordable, fixed cost method of acquiring a new vehicle that can be tailored to suit your monthly budget and annual mileage, making budgeting easier and straightforward.
  • Fixed repayments over a period and on the exact vehicle that suits you.
  • Low initial outlay, contract hire allows you to choose your own initial payment and lease term which is usually between 24-60 months.
  • Savings for VAT registered customers – 50% of the VAT is reclaimable on the monthly rental, with 100% reclaimable on commercial vehicles.
  • Profit from the sale proceeds or the majority of the sale proceeds less a percentage to the finance companies in some instances.  
  • Easy accounting and tax effective method of vehicle funding. Vehicle lease payments are classed as rentals and can be offset against tax in full or part dependent on the vehicles use.
  • Finance companies (the lessor) offer beneficial rates to encourage lease transactions, as they benefit from written down allowances as the vehicle owners; this results in a low cost funding method. The customer (lessee) benefits from the tax benefits of a rental.
  • The finance company (the lessor) finances the vehicle less the VAT. This lowers the balance financed passing on a more cost effective monthly payment profile offering better cash flow and cost method of acquiring a new vehicle, that can be tailored to suit your monthly budget and annual mileage, making budgeting easier and straightforward. 50% of the VAT is reclaimable on the monthly rental, with 100% reclaimable on commercial ve

  • Flexi Lease No Residual Value 

    This is as a fully amortized lease. Which is where the asset value is written down to a nominal figure over the lease period. Full capital return, less nominal 2.5% from the profit achieved from the sale is refunded to the lessee classed as a refund of rentals, or as per the terms of your agreement.

  • Finance Lease agreements are not subject to mileage restrictions. The customer is referred to as the lessee and is responsible to the Finance Company, the Lessor, to ensure the vehicle sale is carried out as per the lease agreement.

   

  Contract Hire or Leasing – which is the correct terminology?

  Contract Hire may be referred to as Leasing, whilst this is a popular reference, a vehicle leasing agreement is not the same as Contract Hire, there are key differences.

  Vehicle Lease agreements in the U.K. are usually subject to a residual value, where the lessee – the person who leases the vehicle – is responsible to the Lessor – the owner (Finance Company) – for the residual value amount.

  Alternatively, there may be what is termed as fully amortized, which is where the asset value is written down to a nominal figure over the lease period.

  To make life as simple as possible, the All Vehicle Contracts website helps you choose and compare which vehicle and vehicle lease deal is right for you. Interactive quotation options and full vehicle comparisons, on virtually any make, model or manufacturer, are available for you to explore and compare on line.