Finance Leasing is a cost effective agreement that is beneficial for VAT registered companies, with low monthly payments for easy budgeting and enables you to share the potential rewards of the resale value of the vehicle.
- Low cost initial payments.
- Affordable fixed monthly payments to make budgeting easier.
- The vehicle is treated as an asset on a balance sheet and the rentals, or a proportion of the rentals can be deducted from taxable profit, dependent on the vehicle.
- VAT registered companies can reclaim the VAT on the monthly rentals.
At Toyota Financial Services we offer two types of Finance 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 all 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 can find out more here.
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. You can find out more here.
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.
Alternatively call our dedicated team to gain a quote on 0800 470 0445, lines open Monday to Friday 8:30am – 5:30pm. Calls to this number are not chargeable, or you can email us or request a call back.