|
|
Outright Purchase
|
Finance Lease
(LR)
|
|
Who owns the machine?
|
The Customer
|
The Funding Company until the final payment is made
|
|
Who carries the Residual Value risk?
|
The Customer
|
The Customer
|
|
Who carries the ongoing Maintenance risk?
|
The Customer
|
The Customer
|
|
Is the machine on or off the balance sheet?
|
On balance sheet
|
On balance sheet
|
|
Typically, how much cash is required up front?
|
100% of vehicle purchase price
|
Typically 10% of purchase price
|
|
Does the customer own the machine at the end of the contact?
|
Yes
|
No
|
|
Can the monthly payments be offset in full against tax?
|
There are no monthly payments. Capital Allowances can be offset against tax.
|
All of the monthly rentals may be offset against tax.
|
|
How much VAT can be reclaimed?
|
100%
|
100%
|
