Funding Methods - Finance Lease

Advantages:

Ø Small upfront deposit and the option of a balloon payment.
Ø Rentals can be offset against tax.
Ø User can decide when to cancel contract but will incur some early termination charges.

Disadvantages:

Ø Vehicles are on Balance Sheet.
Ø Risk of vehicle resale value lies with user.
Ø No capital allowances for user.