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.
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).
Lower monthly rentals than a full payout agreement.
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.
Depending on levels of business use, an element of the VAT on rentals may be recoverable by VAT registered businesses.
A proportion of rentals may be claimable as an expense against taxable profits.
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.
There’s no large final repayment at the end of the agreement.
You’ll have an opportunity to share in any excess sales proceeds.
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.
As well as our fantastic Škoda Finance Lease Plans. we also offer a fantastic selection of other affordable Finance Options. Our selection of finance plans includes Personal Contract Purchase, Hire Purchase, Contract Hire, Lease Purchase, and Lease&Care. Discover our range of Finance Options online today at Heritage Škoda and find your perfect Finance plan.
Here at Heritage Škoda, we're delighted to stock the entire New Škoda Range at our Yeovil showroom. For more information on our excellent-value Finance Lease plans, use our handy online enquiry form to get in touch with our Škoda team today.
While you wait to hear back from our friendly Škoda team, why not explore our great-value Škoda New Car Offers where you'll find a wide range of Škoda Finance deals. These offers include generous deposit contributions, low monthly payments, and huge savings! Alternatively, you can call or visit your local Heritage Škoda dealership if you’d prefer to speak to a member of the team in person or over the phone.
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