An Operating Lease is a very basic form of leasing, you pay fixed monthly Rentals based on the Initial Rental, mileage and residual value over a period of 12 to 60 months.
Key points of an Operating Lease
Contract lengths range from 12 to 60 months
Allows for accurate budgeting over the term of the lease
For some VAT registered businesses, 100% of the VAT in the Rentals is reclaimable for vans and 50% for cars
Vehicle is delivered to you and collected from you when you hand it back
Appears off Balance Sheet
Things to consider about an Operating Lease
You will never own the vehicle
Road Fund Licence is supplied only for the first year