A Finance Lease is a form of flexible leasing to fund the use, but not the ownership, of a vehicle and is ideally suited for VAT registered businesses. 

The leasing company (lessor) hires the vehicle to the customer (lessee) for an agreed period of time (the primary period of hire) for an agreed monthly sum.

Finance Lease agreements can be regulated or unregulated under consumer credit regulation.  This all depends on the type of customer, the total amount of the rentals and the purpose of the agreement.

Finance Lease is a tri-partite transaction (see Finance Structures module).