What is Finance Lease?

Finance Lease- Full Pay Out

Choose Your Lease Terms
Decide your initial rental, preferred lease length, and estimated annual mileage. These details are used to calculate the total lease cost, which is then split evenly across your agreement—no balloon payment at the end.
Pay Over Time
With ‘Full Pay Out’ finance lease, the full cost is paid in equal monthly instalments throughout your term. This gives you predictable payments with no large lump sum due at the end.
End-of-Term Options
When your agreement ends, you can either:
- Enter a secondary rental period and continue using the vehicle for an annual fee, or
- Sell the vehicle to a third party on behalf of Volkswagen Financial Services and receive a percentage of the sale proceeds.
Download our simple guide to Finance Lease - Full Pay Out

Finance Lease- Balloon

Set Your Lease and Balloon Terms
Choose your initial rental, lease duration, and annual mileage. The total lease cost is split into monthly payments and a final deferred “balloon” payment—this lowers your regular monthly cost.
Pay Monthly with a Balloon at the End
You’ll make equal monthly payments throughout your term, with a larger final balloon payment due at the end. This payment must be settled regardless of the vehicle’s resale value.
Choose How to End Your Lease
At the end of your agreement, you can:
- Sell the vehicle on behalf of Volkswagen Financial Services and use the proceeds to cover the balloon payment (any surplus may be shared with you, but shortfalls must be paid by you), or
- Pay the balloon amount yourself and enter a secondary rental period to continue using the vehicle.
Download our simple guide to Finance Lease - Balloon

The benefits of Finance Lease

Opportunity to benefit from the vehicle sale

When the vehicle is sold at the end of the agreement, any surplus funds are split between us.

Flexibility to extend your agreement

If you get to the end of the agreement and dont want to part with your vehicle, you are able to extend with a secondary rental period.

Tax deductible

If you are leasing as a business customer, there are several tax benefits which you can take advantage of.

Ability to configure to your needs

With two options, you can either look to benefit from lower monthly payments or no larger final payment depending on your circumstances.

Would Finance Lease suit me?

Finance Lease is a product which enables you to lease a vehicle but also benefit from its sale. It may be the best option for you if:

You can benefit from claiming tax back
You want the opportunity to benefit from the sale of the vehicle

If Finance Lease is the right product for you, you now need to find the perfect vehicle!

At Volkswagen Financial Services we work with all the brands of the Volkswagen Group, so you can be sure to find the right vehicle from the range of brands below: