Deciding how to finance your fleet is a crucial decision with long-term implications. The right choice can provide you with considerable cost savings and operational efficiencies, while the wrong one could lead to unexpected expenses and complications.
One option is Finance Lease. It offers a balance of control and flexibility, potentially making it an attractive choice for your fleet. In this blog, we’ll explore what Finance Lease is, how it works, its pros and cons, and how Alphabet can guide you in making the best choice for your fleet.
What is Finance Lease?
How does it work?
Similar to Contract Hire, in a Finance Lease agreement, the leasing company retains ownership of the vehicle, while you pay regular instalments to use it over a predetermined period.
However, unlike Contract Hire, Finance Lease agreement allows the vehicles to sit on your company's balance sheet, offering potential tax advantages.
And at the end of the lease term, you can do one of two things:
- Sell the vehicle to a third party and retain any balance of profits (minus a final balloon payment), or
- make the balloon payment and continue using the vehicle under a set rental agreement.
Ready to explore if Finance Lease is the right fit for your fleet?
Implementing Finance Lease for your fleet
When it comes to choosing the right fleet funding for your business, Alphabet is ready to help. We offer a range of fleet funding options, including Finance Lease, to ensure your choice aligns perfectly with your business needs.
Our team of experts is committed to helping you navigate Finance Lease agreements. We offer advice tailored to your situation, covering everything from adjusting balloon payments to maximising your fleet's value. Plus, with our extensive industry network, we can help you secure premium vehicles for your fleet.
