Financial lease 

How to finance

By choosing a fixed rate Finance Lease contract you can hire a DAF truck for a fixed period of time without the burden of a large up front VAT payment. The fixed monthly rentals give peace of mind and can help to improve your cash flow. Subject to credit approval, we can offer a wide range of flexible payment options including structured or seasonal rental schedules and balloon payments. Opting for a final balloon payment can substantially reduce your monthly rentals.

As Lessor, PACCAR Financial owns the vehicle and when all rentals have been paid you can extend the use of the vehicle on a year by year basis on payment of a nominal, upfront, annual rental. Alternatively the vehicle can be sold with a major part of the net sale proceeds being refunded to you by way of a rebate of your rentals. Finance lease can also be beneficial from a tax point of view, and you should discuss what is best for your individual circumstances with your accountant.

Main characteristics of finance lease:

• Monthly rental payments including VAT 
• Total monthly payments can be offset against taxable profits 
• Option to extend the agreement 
• On balance sheet for the customer
• Ownership with PACCAR Financial

Main benefits of finance lease:

• Low capital outlay 
• 100% financing (unless agreed otherwise) preserves your working capital 
• Cash flow impact of VAT is minimized 
• VAT on rentals is reclaimable 
• Customer can reduce tax bill by offsetting rentals against taxable profits 
• Improved cash flow from known monthly rentals 
• Can be tailored to your specific operating environment

Other ways of financing: