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Balloon Lease This lease plan simply funds the use of your chosen vehicle. As your company leases the vehicle, monthly rentals are tax deductible. Variable payment patterns, including low initial rental, are available, so you also benefit from low capital outlay. After the primary period, the lease can be extended into a secondary period with nominal annual rental. At the end of the lease agreement you may sell the vehicle (as an agent to the finance company), or return to the finance company to sell. A proportion of the sale proceeds, typically 95% plus, are returned to you as a refund of rentals. Finance Companies can also claim back the VAT on the purchase price of the car and pass the benefits on to the customer by means of cheaper rental amounts. VAT registered users can then claim back 50% of the finance rental costs where there is private use of the vehicle. Companies can also claim back 100% of the VAT if it's a commercial vehicle. To opt for a balloon lease is a good way to allow for a lower deposit and lower monthly rentals. At the end of the primary period, the balloon payment must be settled. Why consider a Balloon Lease?
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Merry Hill Van Centre Ltd |
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