Finance Lease - No Balloon
You lease the vehicle for a fixed term. At the end of the lease it’s either sold and you receive the entire sales proceeds, or you have the option to retain the vehicle on lease for a nominal rental (Peppercorn).
Finance Lease - With a Balloon
A VAT-efficient way of funding a vehicle that enables you to keep monthly payments low. The balloon is a lump sum final payment that is set at the outset of the contract, which you pay off using the sale proceeds of the vehicle at the end of the contract.