
Think of this as your minimum commitment, low payments option. In an operating lease, you only pay for the use of the machine. That lowers your monthly payments. At the beginning, you pay an upfront rental fee, and your rental payments include VAT. At the end of the agreement you simply give the machine back to John Deere, subject to return conditions. Though you cannot claim capital allowances, you can offset the rental payments against taxable profits as a business expense.
Pay only for what you use, with low payments and no ownership commitment.
Loan is a straightforward financing option that has you own the machine you make payments on.
If you do not wish to own, but still would like to enjoy many of the benefits of the hire purchase option, finance lease is for you.