Key highlights
- Lender owns the vehicle; you lease it for work
- Predictable repayments suit regular vehicle updates
- End-of-term residual options affect total cost
- Understand residual arrangements upfront
- 80+ lenders compared through Simon Kendrick
A finance lease is another way to put a vehicle to work in your business without buying it outright at the start. It suits some operators well, depending on how they like to manage assets and cash flow. Here is how it generally works.
What is a finance lease?
With a finance lease, the lender owns the vehicle and leases it to your business for an agreed term while you use it for work. You make regular lease payments, and at the end of the term there is typically a residual value to deal with under the agreement.
Why choose a finance lease?
Leasing can help keep repayments predictable and may suit businesses that like to update vehicles regularly across cars, utes, vans and SUVs. The accounting and tax treatment of a finance lease differs from ownership structures, so confirm the details with your accountant or registered tax adviser.
What are finance lease end-of-term options?
At the end of a finance lease there are usually options around the residual, which can affect the total cost. Understanding these upfront helps you compare a lease against a chattel mortgage or hire purchase.
How do you compare leasing options?
Overdrive Business Vehicle Finance compares 80+ banks and non-bank lenders through Managing Director Simon Kendrick, your single point of contact. Request an indicative quote and a no-obligation soft check to explore what suits.
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