A Finance Lease is a form of flexible leasing to fund the use, but not the ownership, of a vehicle and is ideally suited to 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.  This all depends on the type of customer and the total amount of the rentals.

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