Finance Lease is a leasing agreement where you can share the potential rewards of the future resale value.
How does Finance Lease - Full Pay Out work?
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Choose Your Lease Terms
Choose your vehicle, initial rental amount, 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. There is no balloon payment at the end.
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Pay Over Time
With ‘Full Pay Out’ Finance Lease, the full cost is paid in equal monthly instalments throughout your agreement. This gives you predictable payments with no large lump sum due at the end.
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End-of-Term Options
When your agreement comes to an end, you have two options:
You can sell the vehicle on behalf of Volkswagen Financial Services to an unconnected third party and can receive a share in any excess sales proceeds providing all payments have been made
Alternatively, if you want to keep using the vehicle, you can enter into a secondary hire period, paying an annual ‘peppercorn’ rental
How does Finance Lease - Balloon Payment work?
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Choose Your Lease Terms
Choose your vehicle, initial rental amount, preferred lease length and estimated annual mileage. These details are used to calculate a monthly rental payment amount and the final balloon payment
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Pay Monthly with a Balloon at the End
With ‘Balloon Payment’ Finance Lease, the full cost is paid in equal monthly instalments, followed by a larger final balloon payment at the end. This balloon payment must be settled regardless of the vehicle’s resale value.
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End-of-Term Options
When your agreement comes to an end, you have two options:
You can sell the vehicle to an unconnected third party on behalf of Volkswagen Financial Services and then settle the final balloon payment. If the vehicle is worth more than the final balloon payment, you can then share in any excess sales proceeds. However if the vehicle is worth less then you must cover the shortfall
Alternatively, if you want to keep using the vehicle, you can settle the final balloon payment and enter into a secondary hire period, paying an annual ‘peppercorn’ rental
The benefits of Finance Lease
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 don't want to own the vehicle at the end of the agreement
- You want the opportunity to benefit from the sale of the vehicle
- You accept the risk of covering any shortfall (should the vehicle be worth less than the finance owed at the end of the agreement), or benefit from any excess sale proceeds (should the vehicle be worth more than the finance owed at the end of the agreement)
- You want to lease a vehicle but don't want to pay any damage or excess mileage fees at the end of the agreement
- You want the ability to modify the vehicle without the concern of damage charges at the end of contract
- You want the flexibility of staying in the vehicle after the contract has ended with a peppercorn rental period
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:
