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How Finance Lease works. 

You choose your upfront rental, how many miles you expect to drive each year and how long you want to keep the van. Your local Dealer will then work out your monthly rentals. You can also agree a balloon payment. This is a lump sum to be paid at the end of your agreement, which helps to lower your regular payments. You then continue with monthly rentals throughout the term of your agreement.   

For limited companies or PLC customers only: As a limited company or PLC customer, an element of VAT may be reclaimable, depending on vehicle usage (proportionally) and your rentals may be allowable against taxable profits. Please speak to your usual tax or HMRC adviser for more information. 

 

For more information on the features of the different finance products available from Mercedes-Benz Financial Services UK Ltd, your Mercedes-Benz Van, please visit our Comparison Table or our Finance Products FAQ page.

 

Ahead of taking out an agreement with Mercedes-Benz Financial Services UK Ltd, please click here to see the documents that you’ll be sent.

 

Return the vehicle and Mercedes-Benz Financial Services UK Ltd will sell it on your behalf.

 

Finance Lease Finance Breakdown

At the start of your agreement you’ll need to pay your advance rental payment. Once your agreement begins, you’ll make monthly rental payments for the duration of your agreement. At the end of your agreement, once you’ve made all outstanding rentals, you’ll have the following options:

-Extend your agreement.

-Sell your vehicle to an independent third party.

-Return the vehicle and we'll sell it on your behalf.

How Finance Lease works

What happens at the end of your agreement? 

At the end of your agreement, you have the following options:

You can extend your agreement for a fixed period. To do this, you pay a ‘peppercorn’ payment, which is equal to one month’s rental per year.

When all outstanding finance on your vehicle has been paid (including the balloon if applicable), you’re able to sell the vehicle acting as our agent to an independent third party. Mercedes-Benz Financial Services UK Ltd will invoice the third party, retaining 5% of the sale proceeds with the remaining funds returned to you as a rebate of rentals.

When all outstanding finance has been paid (including the balloon if applicable), Mercedes-Benz Financial Services UK Ltd will arrange to sell the vehicle via auction. We will retain 5% of the sale proceeds and the remaining funds will be returned to you as a rebate of rentals (minus administration costs).

 

When you come to the end of your agreement, we hope that you will lease another Mercedes-Benz through Mercedes-Benz Financial Services UK Ltd, subject to new credit checks at the time of your application. Ask your local dealer for more details, as you approach the end of your agreement.

The finance documents you can expect from us.

When taking out an agreement, we’ll send you three documents: Your Finance Agreement Explained (reference only), Pre-contract Credit Information (reference only), and your Finance Agreement, which will require your signature.

To help you understand your agreement and to make sure it’s the right plan for you, we have included samples of each document below for you to read before taking out an agreement. Any financial data in both the Pre-contract Credit Information and Agreement documents is for illustrative purposes only. Information specific to your agreement will be sent to you if you decide to go ahead with your chosen agreement.

If there are any terms used that you’re unsure of, take a look at the Glossary.


Got a question? Please speak to your local Dealer – you’ll find their details here .

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