How does Finance Lease work?

How does Finance Lease work?

How does Finance Lease work?
13 May 2022

Finance Lease (FL) is a contract to lease a van or truck for business purposes, very similar to Business Contract Hire (BCH)

You'll agree on an initial rental, annual mileage and the duration of your lease agreement, but you won't be able to walk away from the vehicle as you can with BCH.

A Finance Lease includes a balloon payment that represents the value of the vehicle at the end of the lease. It will be necessary for you to sell your vehicle to a third party and then pay the sale proceeds to your funder. You keep the difference if you sell your van for more than the funder valued it (for example, if you kept it well or didn't use your mileage allowance). However, if you sell for less (e.g. the vehicle is damaged or the mileage is exceeded) you will have to pay the difference. 

Finance leases include Road Tax for the first 12 months only. 

Is Finance Lease the right option for you? Or maybe you'd benefit more from Business Van Contract Hire? Click below to compare these two popular van leasing options.


Need any help choosing the right business van lease deal?


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If you need help give us a call on:

01424 863 456 Head Office

020 3627 1127 London

0161 820 7808 Manchester

0121 314 2364 Birmingham

0117 911 0410 Bristol

Am I Eligible?

We work in partnership with many of the UK’s leading van leasing, car leasing, contract hire and finance leasing funding companies in order to provide the most competitive rates and offer you the best leasing deals possible. Our guide to eligibility will help you understand the various requirements for establishing a vehicle finance agreement.

Our Vehicle Ordering Process

Achieving the best van leasing deals and the best car leasing deals has become a key consideration in the work we do, so you can get the best leasing deals. Our process is built to ensure we accurately and efficiently identify your needs and requirements, achieve the best finance deal for you, apply for finance on your behalf and provide you with the quickest delivery possible.

Our First Class Service

At Commercial Vehicle Contracts, we ensure that every aspect of the car leasing process and van leasing process is seamlessly undertaken with full management on your behalf, meaning you can sit back and relax with the peace of mind that your chosen vehicle will arrive at your desired address matching your required needs.

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Basic List Price
Monthly Rental
Engine and Drive Train
Transmission Type
Engine Size
Engine Configuration
Fuel Type
Fuel Delivery Type
Euro Emissions Standard
Electric Range
Combined (WLTP)
Fuel Consumption
Combined (WLTP)
Combined (NEDC)
Maximum Speed
0 to 60 mph
0 to 62 mph
Power (BHP)
Power (PS)
Power (KW)
Dimensions and Weights
Ground Clearance
Boot Capacity
Fuel Tank Size
Gross Weight
Kerb Weight
Max Braked Towing Weight
Max Unbraked Towing Weight
Body Style
Insurance Group
RFL Rate
Front Brakes
Rear Brakes
Standard Front Tyre Size
Standard Rear Tyre Size
Standard Spare Tyre Size