Leasing from Challenger is ideal for businesses with longer term vehicle requirements. It allows a business the use of a vehicle for a fixed term (usually 24, 36, or 48 months), and the right to buy that property for the agreed residual value when the term expires.
At the inception of the lease, Challenger and the lessee agree in the lease contract what the residual value of the vehicle will be at the end of the lease term. When the lease terminates, the leased vehicle can be either sold directly to the lessee for the residual value, the lease can be extended for an additional term, or the vehicle can be sent to auction for sale. If, after the vehicle sells at auction there is a shortfall, then the lessee will be will responsible for that amount. Conversely, if the vehicles sell for more than the residual value, then Challenger will pay the lessee any excess amount realized.
Considering leasing? Call Challengers’ experts to see if leasing is the right option for your business.