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Finance Lease
This is a tax efficient option where you can choose to fund the entire cost of the vehicle, plus interest, over a set period or pay lower monthly rentals and then a final payment based on the anticipated resale value of the vehicle.
The vehicle is shown on the balance sheet and the VAT is reclaimable. The monthly rental is determined by the cost of the vehicle, the period of the contract and the proposed annual mileage.
You do benefit through fixed cost motoring with optional maintenance packages but also take on the administration and operating risks for the vehicle.
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