(See Single Investor Lease for comparison.) General term applies to most types of equipment leases. Typically, a finance lease is a full-payout, uncancellable agreement, and the lessee is responsible for maintenance, taxes, and insurance.
This lease is also referred to as a conditional sales contract. It's typically non-cancelable although it offers the lessee the ability to acquire title to equipment at an agreed upon rate such as $1 or the fair market value.
A financing tool whereby a Lessee can obtain title to the asset for a nominal amount or a guaranteed purchase amount. For tax reasons this form of lease is generally thought of as a conditional sales contract. Typically, a Finance Lease is non-cancelable through out the term of the lease and the end-user is accountable for taxes, maintenance, insurance and other costs of ownership.
A financing device whereby a Lessee can acquire title to the asset for a nominal amount or a guaranteed purchase amount. The lease is usually considered a conditional sales contract for tax purposes. Generally, a Finance Lease is noncancelable during the term of the lease; and the end-user is responsible for maintenance, taxes, insurance and other costs of ownership.
A lease used to finance the purchase of equipment; not a true lease. Finance leases are generally considered to be capital leases from an accounting perspective and non-tax leases from a tax perspective.
A lease that extends through the major portion of the equipment's useful life. The lessee assumes the risks and responsibilities of owership over the duration of the lease and usually has the option to purchase the equipment for a nominal amount at the end of the lease term.
1). As most frequently used, a net lease which has as its purpose the financing of the use of property for a major portion of the property's useful life. The term is typically used in reference to leases written by third-party lessors (see third-party lessors). 2). A lease which meets the requirements of TEFRA Section 209 as amended by the TRA. 3). General term applied to most types of equipment leases. Typically, a finance lease is a full-payout, non-cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance.
These 4 terms describe leases that combine lower, fixed monthly payments with the guaranteed-in-advance right to purchase the equipment at the conclusion of the lease term at a pre-determined price. These leases generally do not qualify as deductible operating expense and must be amortized and depreciated. There are, however, some significant other tax benefits under I.R.S. section 179, that may be available to your business. See First Capital's " Taxes & Leasing" page for a more complete discussion .
1) General term applied to most types of equipment leases. Typically, a finance lease is a full-payout, non cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance. 2) An alternative definition is found in the Uniform Commercial Code, Article 2A, to designate a lease from a non-vendor lessor who acts solely as a funding source and does not deal directly in the equipment.
Also referred to as a 'full payout' lease, this is a leasing contract providing for the lessee to pay a rental for minimum, noncancellable period of time (the 'primary period) which suffices in total to amortise (see 'Amortisation') the lessor's capital outlay incurred in the purchase of the asset to be leased. The rentals include an element of interest charges and profit. The whole of the rentals paid under a leasing agreement (excluding VAT) can be offset against the lessee's tax liability as a normal revenue expense (see 'Corporation Tax'). Where the asset is not fully amortised during the hire period the lease is called an 'operating lease' provided that not more than 90% of the asset value is amortised during the primary period. (see 'Lease' and 'Operating Lease')
Lease under which the lessor effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset and where legal ownership may or may not eventually be transferred (see operating lease).
Often, a full-payout agreement in which the customer, at the end of the lease term, assumes ownership of the vehicle or is provided with a purchase option. The lessee is usually responsible for maintenance, taxes and insurance.
This finance package gives you tax and VAT benefits and lets you own the car. The monthly rental is determined by the cost of the vehicle, the period and the estimated future value of the vehicle which is based on the proposed annual mileage.