- Lower monthly payments
- The vehicle can be treated as a balance sheet asset
- Writing down allowances can be claimed
How it works
Full Payout Lease
You spread the cost of the vehicle over the period chosen and, at the end of the agreement, must sell the vehicle to a third party. You then receive a proportion of the sale proceeds as determined at the start of the agreement. Alternatively at the end of the period the agreement can continue into a secondary period where you pay a nominal secondary rental called ‘peppercorn’ rental.
You offset an amount to the end of the agreement to lower the payments. At the end of the agreement you sell the vehicle to a third party and keep any proceeds of the sale over the amount of the balloon. If there is any shortfall however you will be responsible for covering the shortfall amount.
Finance subject to status over 18s, indemnities may be required. Terms and conditions apply.