Leasing FAQs
To help with your decision making process we've compiled a list of the leasing questions we get asked most regularly. This is not a comprehensive list so if you have another question or would like to know more about one of the answers below please contact one of our team on 0800 435-394.
What is an Operating Lease?
An Operating Lease is a long term rental arrangement. It’s a smart way to evenly spread the costs associated with the vehicle usage across its income generating life with no large initial capital outlay. An Operating Lease can be put in place for vehicle fleets, commercial assets, machinery and plant.
Are there different types of lease?
Yes. Flexi Lease has a range of lease products designed suit a variety of needs and requirements, from operating leases to finance leases, lease to own and finance for your ex-lease and business equipment purchases. Review our products and services page or call one of our team to discuss your specific needs.
What is included in a fully maintained lease?
A fully maintained lease includes annual vehicle licencing, warrants of fitness, scheduled services, maintenance due to fair wear and tear and a set number of replacement tyres as agreed in your lease contact.
Does my lease payment include maintenance?
You can choose at the start of the lease to include a full maintenance or service contract and mechanical or GAP insurance cover. Choosing a Fully Maintained Operating Lease option gives you the added comfort of trouble free motoring in one monthly lease payment. Alternatively you may choose a non-maintained lease and address these costs yourself when they arise.
What are the shortest and longest vehicle lease terms?
Lease terms can be as short as 6 months, as long as 45 months for passenger cars and up to 60 months for light commercial vehicles (subject to IRD guidelines). For other assets it is not uncommon to see a lease that can run for 84 months and longer!
Do I have to lease a new vehicle?
No. Flexi Lease offers a wide range of second hand vehicle lease options. Have a look at our current vehicles for lease or call us to discuss your requirements.
Can I purchase my lease vehicle at the end of the term?
With an Operating Lease you may be able to negotiate the purchase of the vehicle at the end of the lease however you cannot arrange this at the start. Operating Leases let you sleep easy knowing that at the end of the lease term you hand the vehicle back and Flexi Lease takes all the residual value risk.
A Finance Lease has a pre-agreed residual value that you can set at the start of the lease and gives you the comfort of knowing what price you will pay to buy the vehicle at the end of the lease term. With a Finance Lease you take all the residual risk however if you decide you don't want the vehicle then Flexi Lease can assist you with disposal on a contract basis though its in-house end of term facility.
What happens if the vehicle is worth less than the residual value?
In the case of an Operating Lease, unlike some other lease companies, Flexi Lease does not hold you liable for any shortfall in residual value of the vehicle. If the bottom falls out of the market and the vehicle is worth less than expected it’s our problem – not yours.
What if my circumstances change during the lease and I want to cancel?
A lease is a structured arrangement for an agreed contract term and is generally non-cancellable. If your circumstances substantially change and you want to cancel a lease before the end of the term it is possible however an early settlement fee or early termination charge may apply.
How is Fringe Benefit Tax (FBT) assessed on a leased vehicle?
FBT (Fringe Benefit Tax) is calculated on the market value of the vehicle at the inception of the lease.
Does Flexi Lease offer a Sale and Lease Back facility?
Yes, Flexi Lease can provide a Sale and Lease Back solution specific to your existing fleet. This is the perfect way for you to release the capital in your existing fleet and put it to better use in your business. This type of facility also allows you to stage a controlled fleet replacement programme without being exposed to having all your vehicle leases finishing on one set day.
Can I find a vehicle elsewhere and lease it with Flexi Lease?
Yes, contact us for more information on how to do this.
I want to lease a vehicle. Where do I start?
Contact us through any one of our many available forums (phone, web, e-mail or facebook) to discuss your specific requirements and we will work with you to achieve the best result for you and your business.
I’m looking to purchase an ex-lease vehicle. Can Flexi Lease provide finance options?
Yes, finance options are available from no deposit to approved purchasers, Flexi Lease can help you buy the ex-lease vehicle of your dreams!
Search our Vehicles for Sale or contact us to discuss your requirements.