This type of Finance agreement is between the business, sole trader or partnership and the finance lease company, all finance lease agreements are subject to a credit search.
There is a lot of ‘inconsistent information’ given regarding the balloon/end payments, so let me tell you the truth… The balloon payment MUST be paid then sold to a none related 3rd party.
You state the expected annual mileage at the start of your contract, the finance lease company then works out the expected ‘residual’ value of the car or van at the end of the agreement, which will be your end payment. (Basically what they think the car or van will be worth for the age and mileage at the end of the contract).
The Finance Lease Company will minus this end payment and divide the remaining balance of the purchase price by the amount of months you wish to lease the car or van for.
You can see why Finance Lease is such an appealing method of funding.
Compare Finance Leasing quotes at www.leasebid.co.uk Compare Finance Lease Offers
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