An Operating Lease is perhaps the most simple way to obtain a vehicle, where the vehicle is hired to you for a fixed period.
Monthly rentals are based on the difference between the price of the vehicle at the start of the agreement and its projected residual value, plus finance charged. Therefore only a proportion of the vehicle's value is being repaid which avoids any large initial outlay and reduces the monthly rental.
At the end of the lease period the vehicle is simply returned, freeing you from any further obligations apart from any excess mileage or damage charges, if applicable.
- You agree an initial rental
- You agree the mileage you wish to cover over the period of the agreement. This helps us determine the expected ‘Residual Value’ of the vehicle at the end of the agreement
- You simply pay monthly or quarterly rentals throughout the agreement. At the end of the agreement you just give the vehicle back
Cost-effective and easy to manage, an Operating Lease offers some great benefits for businesses:
- By including a guaranteed residual value, your monthly rentals are reduced
- There is no large initial deposit
- At the end of the lease period the vehicle is returned
- Fixed monthly rentals that fit your budget and protect you from unexpected bills
- For further peace of mind, add a Mercedes-Benz Service Contract
- Possibility to extend the lease in some instances
- Eliminates capital expense
- The vehicle does not show as an asset on the balance sheet
- An additional line of credit
- Rentals allowable against taxable profits (proportionally)
- VAT reclaimable depending on usage