Operating Lease

An Operating Lease from MAN Finance provides a cost-effective solution for customers requiring use of a vehicle/asset for a specific project over a period which is shorter than the assets anticipated working life.

For example, a haulage company with a large contract with a major supermarket chain to move foodstuffs. The key feature of an Operating Lease is: The operator has the benefit of a fleet of the most modern, up-to-date vehicles on the road, whilst making the minimum monthly repayments.

The haulier simply makes rental repayments based on the anticipated depreciation of the vehicle, leaving the remaining capital sum to be met by the proceeds achieved on the vehicle sale at time of disposal.

Any risks relating to this disposal are included in the operator’s contractual obligations.

Such action keeps the company’s rental payments as low as possible - a factor which can obviously help the company win the contract in the first instance - by enabling it to tender a competitive price.

An MAN Finance Operating Lease can also be attractive to those companies wishing to account for their asset finance commitments on an ‘off balance sheet’ basis. For example, companies which are subsidiaries of a major plc. Such companies measure their performance in terms of return on capital employed. If funding for a particular asset was placed ‘on your balance sheet’, this would have an adverse effect on its capital ratios. However, by providing ‘off balance sheet’ funding through an Operating Lease, MAN Finance is able to help you remain within your target return on capital employed ratio.

An Operating Lease from MAN Finance offers the lowest pre-tax rentals of any finance scheme.