Finance Lease is a great method for VAT registered companies to buy vehicles at trade discounted rates with tax benefits. As this finance type is effectively a rental rather than a repayment, companies can claim VAT back on their payments whilst having full ownership of the vehicle for the duration of the lease. On the road prices of cars will be significantly cheaper than the normal purchase price due to volume related bonuses and trade discounts being available to the customer.

There are no mileage restrictions on Finance Lease, and so no excess mileage charges to be made at the end of the term. Monthly payments are based on the initial price of the vehicle and the final payment is based on an estimated annual mileage. At the end of the term the final payment has to be cleared by either sale of the vehicle (giving companies the chance to make some equity) or can be refinanced/cleared in full.