Choose one of our websites

What is Finance Lease?

A Finance Lease is a method of financing for VAT registered businesses, companies and also partnerships/sole traders. Finance lease is where the finance company owns the vehicle and at the end of the contract they simply keep the vehicle. Finance lease is when the car is effectively hired out to businesses for a set amount of time but they will never be the owner of the vehicle.


  • Low monthly costs
  • Monthly Rentals can be reduced further by the introduction of a Balloon Rental at the end of the contract.
  • Customers can claim 50% of the VAT on cars and 100% on commercial vehicles.


  • Never own the vehicle
  • Car sold to a third party
  • Operating risk associated with the vehicle
  • Interest rates can vary

More information on Finance Lease

As with all leasing contracts the initial payment is usually low and you will pay a fixed monthly payment to the leasing company.

The monthly rental cost is calculated by the initial cost of the vehicle, the residual value (end value), the length of the contract and the balloon payment. This is not always the residual value of the car, since the balloon payment can vary. The residual value is easier to calculate as Finance Lease is still a fixed mileage contract.

During the finance lease period you will have full use of the vehicle until the end of the contract. Once the contract is over, the finance company will then sell the car to a third party. Once the sale is completed if it is sold above the predetermined balloon payment then the finance company will refund some of the proceeds back to the business/company who took out the Finance Lease. A small number of companies will also let you take out a secondary rental if you want to keep the car for a longer period of time.

Who is Finance Lease right for?

Finance Lease is good for companies who need a vehicle quickly without having pay a large initial payment and disrupt cash flow. This is also a great solution for companies who need more than one car.

Finance Lease will also suit people who do not wish to take ownership of vehicles and who want to use luxury vehicles but who do not have to buy them out right. This is an attractive proposition for businesses as there are also some tax benefits to Finance Lease.

Trust, Compliance & Small Print

All primary prices shown on this page ex VAT at the prevailing rate unless otherwise stated.

An excess mileage charge may be applied if the contracted mileage is exceeded. Full details will be provided within the written quotation.

You will not own the vehicle and it should be returned clean in a condition that is commensurate with its age and mileage, otherwise charges may apply.

Central Contracts (S.O.T.) Limited is a credit broker not a lender
Central Contracts (S.O.T.) Limited is authorised and regulated by the Financial Conduct Authority
We are acting as a credit broker for the purposes of arranging your selected finance contract. We have a commercial relationship with a carefully selected panel of lenders and we may receive a commission from the selected lender. We do not charge you a fee for our credit broking services.

Central Contracts (S.O.T.) Limited.
Central House, Trentham Business Quarter, Bellringer Road,
Stoke-on-Trent, Staffordshire, ST4 8GB.

VAT Reg No. 715 25 1558 Company Reg. No. 3635778
Financial Services Register No. 677877 ICO Registration No. Z7112215

From April 2020 WLTP will replace the current NEDC test procedure for establishing the official Fuel Consumption and CO2 emissions of new cars. Please be aware of the following:
For vehicles registered on or after 1st April 2020 vehicle road tax costs will be based on the WLTP CO2 values and may change the monthly rental cost.
Vehicles registered on or after 6 April 2020 Please be aware the addition of certain factory fitted options may impact the vehicles co2 emissions and affect your monthly rental.

The Financial Ombudsman (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at

Part of the family est. 1998