Finance Lease

The crucial difference from contract hire is that under a finance lease the lessee retains an element of risk.

The transaction is show on the lessee's balance sheet and they are also responsible for maintaining the vehicle during the period of lease and bear the residual value risk. The value of the vehicle is amortised in the rentals and the lessee receives most of the value of the vehicle on sale at the end of the contract.

Sometimes a lower rental is paid during the lease period with a balloon rental paid at the end at a value estimated to equate to sales proceeds. A Finance Lease can therefore be an excellent product for those clients wanting a little more flexibility in the operation of their vehicles or who would prefer an alternative to traditional HP.

To reduce your exposure, we can manage the disposal on your behalf, using our specialist knowledge and expertise to maximise sale proceeds and minimise your risk. Alternatively you can introduce a purchaser to us at the end of the agreement.

Copyright © 2019 TCH Leasing. All Rights Reserved. Registered Office: T.C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH. Registration Number: 648847. VAT Registration Number: 172 5867 36. T. C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH acts as a credit broker in relation to financial products and not a lender. For customers requiring finance, we can introduce you to a small number of carefully selected credit providers who may be able to offer you different finance products to suit your needs, subject to assessment of your personal circumstances. You are not obliged to use these finance products which may have different interest rates and charges. A lender we introduce will typically provide us with a commission for the work that we do, which is agreed in advance and does not vary with the interest rate or the amount financed. Different lenders we work with may pay commission at different rates. We are only able to offer finance products from the providers we work with. T. C. Harrison 1960 Limited is authorised and regulated by the Financial Conduct Authority. FCA Reg. No. 664529.

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