Finance Lease may be an attractive long-term way of paying for the use of a JCB, plant, equipment and vehicles if owning the goods isn’t important or you’d rather not be responsible for the disposal of the goods at the end of your use of them. Fixed regular rentals are made monthly, quarterly or by a tailored instalment profile to suit the needs of your business.
Finance Leases typically enjoy a low initial capital outlay and the VAT, is paid on each rental. If a qualifying asset is used for business purposes, and you are VAT registered (special rules apply) you may be able to recover some or all of the VAT applied to the lease rentals.
The goods can continue to be used after the rentals have been paid, in exchange for a nominal fee commonly known as a continuing-period rental.
Although ownership never passes to you, at the end of the lease and when you no longer require the goods, you may introduce a potential buyer to JCB Finance. If the price is higher than what JCB Finance can achieve and a sale is agreed, a percentage of the net sale proceeds is refunded to you as a rebate of the rentals paid. Terms apply.
If the goods are finally returned to JCB Finance return conditions apply.
The availability and value of tax relief will depend on your individual circumstances; you can, without obligation, request a copy of the contract terms for details of how the facility you are considering would be treated for your business, so that you can discuss this with your accountant or tax advisor.
Goods may be repossessed if you do not keep up with repayments.
JCB Finance provide Finance Lease agreements regulated by the Consumer Credit Act (1974) to Sole Traders or Partnerships of 3 or fewer, where the total amount payable is under £25,000.
How to apply
Call us on 0800 150650 and speak to one of our Relationship Managers. Open Monday to Friday 8.30am to 4.45pm, excluding Bank Holidays. See How to apply for finance for more details.
How does this compare
Disclaimer
Finance provided and subject to acceptance by JCB Finance Ltd (Registered in England No.972265 Registered Office: The Mill, Rocester, Staffordshire, ST14 5JW) who are registered with the Financial Conduct Authority as a lender. UK business users only. Terms apply. Subject to your consent, JCB Finance Ltd will pay a commission to the UK JCB dealer network which is a flat fee plus basic rate tax and employer National Insurance contributions for each JCB machine on the finance agreement. These payments are not additional fees that you will have to pay and is not added to the amount you pay under your finance agreement. Other products are available see JCB Finance Finance Options Explained
FAQs
Can I make changes once the agreement has started?
Some changes are possible e.g. changing monthly instalment date. Fees and/or additional interest charges may apply if you wish to make a change after the agreement has started.
Can I end early?
Leases are for a period of hire as stated on your agreement, but you can end the agreement early giving 7 days written notice and paying all remaining rentals and costs due in accordance with the terms and conditions of the agreement.
You can request a calculation at any point during the agreement which will show you how much you would need to pay if you wanted to end the agreement early. If you wish to end your agreement early you can request a quote via your JCB Finance Online account or email leasing@jcb-finance.co.uk or call 01889 594147.
What are the fees?
Finance Lease has an acceptance fee, payable with the first rental collected after the agreement has started. The fee is documented from the outset.
You may face additional charges if the asset(s) does not meet the return conditions stipulated.
What if my circumstances change?
Contact the Customer Services Team on 01889 594101 or customerservices@jcb-finance.co.uk who will be happy to assist you and discuss what options are available. Open Monday to Friday, 8.30am to 4.45pm (excluding Bank Holidays).
What if I want to sell the goods?
You don’t have ownership of goods during or at the end of a Finance Lease, so you are not entitled to sell. However, after the last rental in the primary period of the lease, you may introduce JCB Finance to a potential buyer.
If ownership is important to you refer to the Hire Purchase based products available from JCB Finance.
Do I have a lump sum to pay at the end?
You may choose to have a final lump sum ‘balloon’ payment – this would reduce the amount you pay in your regular rentals, but the balloon must be paid by you in full when it is due. The amount due would feature on your quotation and documented on your agreement from the outset. Having a balloon is likely to result in you paying more interest so speak to JCB Finance for details.
What happens at the end?
You may continue the lease and pay a nominal rental, as notified by us, until you wish to end the agreement.
Or
You may introduce us to a potential buyer for the goods (e.g the original supplying dealer, the JCB Finance Machinery Sales Centre or an agreeable unconnected third party). If the goods are sold at the current market value, subject to approval, we shall pay you an amount equal to a percentage of the sale price (as indicated on your agreement). Terms apply; please see the agreement for full terms and conditions.
Or
Return the goods to JCB Finance. Return conditions apply.
What does return conditions apply mean?
Before the goods are returned to JCB Finance you must take steps to ensure that everything is in good working order and condition (fair wear and tear accepted) with no accident, structural or mechanical damage. Full details are outlined in the agreement terms and conditions so the requirements are fully disclosed from the outset.
What about insurance?
You have a duty under the agreement to insure the goods on a comprehensive basis.
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