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A Guide To Van Finance Deals

March 12th, 2021

If you’re thinking about leasing a new van, you have probably heard the terms Finance Lease, Contract Hire and Hire Purchase. These are the types of finance agreement that you can choose from when deciding to get a van on finance.

It’s important to think about what you want from your finance agreement, as there are some key differences between the options.

When you’re looking at van lease prices you will often see a monthly figure – this will be based on a standard deposit and lease length. For example: 3+35 denotes that the figure would be based on 3x the monthly quoted rental as an Initial Payment, followed by 35 of the quoted monthly payments. By understanding how the prices you see are worked out, you will be able to decide what option best suits you.

Finance options explained

Hire Purchase:

  • Ownership at the end of the lease
  • Fixed monthly cost
  • VAT paid upfront in full
  • RFL included in the first contracted year
  • 2-5 years
  • No excess mileage or damage charges

Finance Lease:

  • Flexible end of lease options, including ownership and trading in
  • Fixed monthly cost
  • VAT spread over the length of lease
  • VAT reclaimable if registered
  • 2-5 years
  • No excess mileage or damage charges

Contract Hire:

  • No option for ownership – so no disposal issues
  • Fixed monthly cost
  • VAT spread over the length of lease
  • VAT reclaimable if registered
  • 2-5 years
  • Excess mileage and damage charges applicable

Benefits of Van Lease Deals

Whichever financing option you choose, there are a whole host of benefits to your business.

Opting to lease rather than buy means you save money on upfront costs, while also benefitting from the range of cheap van lease deals available to you as a business owner.

New van lease deals allow you to spread the cost of your new vehicle across your agreed lease term, allowing you to plan in the fixed monthly costs to your business outgoings.

Because of the number of cheap van lease deals available to you, you will likely be able to afford a higher quality and spec of vehicle than you would, had you bought outright. This can only benefit your business – by making sure you look professional on the road, and giving a greater level of driver comfort.

Another benefit of new van lease deals, is that new vehicles are subject to manufacturer warranty – giving you peace of mind in the reliability of your vehicle, and that you won’t incur any unexpected costs should it develop issues.

If you have any further questions about Finance please visit our dedicated page, or call us on 0117 962 5314 to speak to one of our van finance specialists

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