Finance Lease is a accounted for 'on balance sheet' The lease is a genuine lease for tax purposes and so depreciation in respect to the truck is claimed by the lessor. The lessee bears the risk for its future value. The lessee is responsible for insuring and maintaining the vehicle. Benefits Known budgetable rentals. Preserves working capital - funds can be invested in other parts of the business.
First rental is only initial outlay.
Tax efficient - rentals are tax deductible. Operator can benefit financially from careful maintenance and use of vehicle. The Volvo Purchase Plan can be combined with the Volvo Contract Maintenance Plan. Operators can then benefit from the advantages of having all regular servicing and repair work undertaken by franchised Volvo workshops. The operator hires a vehicle for an agreed period and achieves ownership on completion of the agreement.