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Operating Leases are the primary method of financing a vehicle so that it remains ‘off balance sheet’. That means that as the company leasing the vehicle, you do not partake in the risk or reward of the disposal of the asset at the end of the lease period.
The most common rental periods are 3, 4 or 5 years although the term is normally matched to the type, usage and mileage of the vehicle and longer periods can be recommended. The payment profile is normally 3 months in advance with a terminal pause (i.e. 3 months in advance followed by 33/45/57 monthly payments with a ‘pause’ at the end of the term to ensure 36/48/60 monthly payments in all) although other profiles are available subject to status. VAT is payable on the monthly rental amount.
Faamco can offer Operating Leases on a variety of terms, and as a benefit, you, the customer, have access to our Vehicle Procurement Management and Build Process Management services.
Of course, should you, the customer, so wish, Faamco can add any of the operational services or any aspects of iFleet Management to the Operating Lease in order to create a totally tailored solution to your requirements (the most complete offering being Contract Hire).