Removes the risk of residual values

Operating lease is simply a form of long term, fixed price truck rental. It is a tax-efficient plan if you want a vehicle to earn you money as you pay for using it over a set period, but don't want the problem of disposal.

The fixed monthly payments are low because Volvo bears all the residual value risks. This qualifies the vehicle for off balance sheet funding.

When the agreement ends, you simply hand the vehicle back and let us take care of everything, leaving you to get on with your business.

Operating lease benefits:

  • Limits capital outlay
  • Low fixed monthly payments
  • No residual risk or disposal problems
  • Payments can be offset against taxable profits
  • Management time released
  • Cash flow is efficient - rentals can be paid out to the operating income
  • An 'off balance sheet' transaction - accounting ratio can be improved