Finance Lease with Agility Fleet is an alternative form of vehicle funding where Contract Hire is unsuitable. Finance Lease is available for businesses that require funding for cars, vans and other light commercial vehicles.
Finance Lease is a method of vehicle funding, whereby a proportion of the vehicle price, interest and costs are repaid in fixed monthly amounts over an agreed contract term. A final balloon payment is then made at the end of the primary term.
How Does Finance Lease Work?
With a Finance Lease solution from Agility Fleet, your business will have the use of the vehicle and effectively rent it for an agreed period of time without suffering high up front purchase costs. However, the vehicle will remain the property of the finance company.
Finance Lease can be provided with a fixed price maintenance agreement although our most popular Finance Lease product comes with a Fleet Management agreement.
The contract period is known as the Primary Term. At the end of the primary term, you have three options.
- You may continue to use the vehicle by paying additional rentals
- Act as our agent in disposing of the vehicle to a third party
- Request that we collect the vehicle and dispose of it
Following the disposal of the vehicle, all sales proceeds (less fees) are used to settle the outstanding finance. This may create a surplus or a deficit. In the case of a surplus, the finance company will refund a percentage of the proceeds back to the hirer whereas in the event of a deficit the hirer will be liable for the shortfall.