Toyota Business Leasing explained
Benefits of Business Leasing
- Low cost initial payments.
- Affordable fixed monthly payments to make budgeting easier.
- The vehicle is treated as an asset on a balance sheet meaning tax allowances can be deducted from taxable profit.
- Monthly payments are not subject to VAT, making it a beneficial solution for non VAT registered businesses.
- VAT registered companies can claim 50% of the VAT.
At Toyota Financial Services we offer two types of Business Leases - Full Payment Lease and Balloon Lease. If you opt for Full Payment Lease you spread the cost of the vehicle over your agreed length of time. At the end of the agreement, you 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.
A Balloon Lease option is when 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.
Please note, if there is any shortfall, you will be responsible for covering the shortfall amount.
For a quote or if you have any queries please contact your dealer. If you're unsure of your local dealer, you can find your dealer here.