This method is a long standing business choice offering flexibility, tax benefits and low rentals because the VAT on the cost of the car is recovered by the Finance Company.

You can select a suitable lease period, usually 12 — 48 months, and pay an advance rental — normally the sum of 3 to 6 of the monthly rentals. Choose the type of agreement — Full term or Balloon. A Full Term spreads the cost over the full term of the agreement while a Balloon lease means lower monthly payment and a higher final payment.

It is likely that you may be able to offset part of the payment against tax and if you are VAT registered, reclaim a percentage of the VAT on the monthly rentals. Once the agreement ends, subject to terms and conditions, you can arrange to sell the vehicle to a third party or continue to use it on a secondary lease agreement.