Gates Leasing Our Services Finance Lease

Finance Lease

Finance Lease is an alternative to Contract Hire which mainly appeals to business users who are vary of incurring Wear and Tear charges due to the nature of their business.

The agreement is structured with a Final payment (Balloon Payment) which is the liability of the Lessee. The lessee can never own the vehicle, but they will benefit from any surplus made when the vehicle is disposed.


  • No excess mileage provided the Balloon payment is cleared
  • No Wear and Tear charges provided the Balloon payment is cleared
  • Profit on sale is returned to the Lessee after deduction of administration fees
  • On Balance sheet funding solution
  • You can extend the agreement for a “peppercorn rental”


  • If the balloon payment is not covered by the sale proceeds the customer is liable for the shortfall
  • You can never own the vehicle
  • The lower the Balloon payment (Final Rental) is set the higher the monthly rentals
More Information on Finance Lease:

It is a product most suitable to Commercial vehicles. You can have a fully amortised agreement with a £1 Balloon Payment which will result in all the proceeds less administration fees) being returned to you at the end of the contract.