Skip to main content

ŠKODA Finance Lease

ŠKODA Interior

Finance Lease is a rental agreement that, whilst never leading to full ownership, could give you a share of any future resale value. There are two types of Finance Lease agreements – ‘balloon’ repayment and full payout.


"Balloon" repayment finance lease

How much do I pay and when?

Full payout is when you spread the amount financed equally over the term. Once you’ve agreed your initial rental, there are two decisions to make that will affect your monthly repayments:

Your rental repayment period

Choose between 12 and 60 month

Final balloon repayment

Agree an amount to defer until the end of the agreement

Mileage per year

Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value).

 

What benefits does full payout offer me?

Lower monthly rentals

Lower monthly rentals than a full payout agreement.

Excess sales proceeds

An opportunity to share in any excess sales proceeds which may settle or contribute to the final ‘balloon’ repayment. The sales proceeds are not guaranteed to cover the final ‘balloon’ repayment.

VAT

Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses.

Claimable as expense

A proportion of rentals may be claimable as an expense against taxable profits.

 

At the end of your agreement you can choose from one of two options:

1. Sell the vehicle on behalf of ŠKODA Financial Services to a selected 3rd party and then settle the final ‘balloon’ repayment. You can then share in any excess sales proceeds.

2. Settle the ‘balloon’ repayment and then enter into a secondary rental period, paying an annual rental and retain the use of the vehicle.


Full payout finance lease

How much do I pay and when?

Full payout is when you spread the amount financed equally over the term. Once you’ve agreed your initial rental, there are two decisions to make that will affect your monthly repayments:

Your rental repayment period

Choose between 12 and 60 month

Mileage per year

Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value).

 

What benefits does full payout offer me?

No final repayment

There’s no large final repayment at the end of the agreement.

Excess sales proceeds

You’ll have an opportunity to share in any excess sales proceeds.

Claimable as expense

A proportion of rentals may be claimable as an expense against taxable profits.

VAT

Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses.

 

At the end of your agreement you can choose from one of two options:

1. Sell the vehicle on behalf of ŠKODA Financial Services to a selected 3rd party. You can then share in any excess sales proceeds.

2. Enter into a secondary rental period, paying an annual rental and retain the use of the vehicle.

Want to find out more about Finance Lease?

Contact Us

Let us call you back

Enter your details below and a member of our team will call you back

We would like to, from time to time, send you details of any offers and latest news. Please can you indicate, by checking the appropriate boxes below, which channels you would like to be contacted by

0
Image Vehicle Price Mileage Fuel Transmission