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Van Leasing FAQs: All you need to know

Whether you’ve leased vans before or you’re looking into van leasing for the first time, you may have questions. Please see below our most frequently asked questions. If you can’t find an answer to your question here, please feel free to contact us, and we’d be happy to help.

Finance

What are the differences between Contract Hire, Finance Lease, and Hire Purchase?

For further details on our finance options please visit the Finance page of our website, or speak to one trained experts, who will help find the right finance option for you.

Am I tied into my lease agreement/ contract for the full term?

How much do I need to put down as a Deposit?

What happens to my £550 holding deposit?

What’s the difference between my holding deposit and the initial payment for my vehicle?

Are there any hidden fees?

Do you provide van leases with no deposit?

Is it possible to lease a van on a personal contract?

Is the van registered to me or the finance company?

When do my monthly rental payments start?

Do I pay my monthly rental to Global Vans or the finance company?

Who do I call if my bank details have changed?

How do I contact my finance company?

My monthly payments are no longer affordable, what do I do?

Who provides the funding for my new vehicle?

How long does finance approval take?

Can I use a guarantor to ensure I get approved for a finance lease?

What does 3+23 or 3+35 mean in terms of vehicle leasing?

Ford Ranger Wildtrak 4X4

Credit:

Do I have good credit?

If you have any further questions regarding whether or not you will be eligible for a van leasing deal with us then please contact our experts on 01179625314.

Will you need to perform a credit check?

I haven’t been approved by the finance company, what can I do?

I want to lease a van; will I have to pass a credit check?

Can a business van lease improve my credit?

cheap van lease deals available on orange glow Ford Transit Custom

End of Lease:

What happens at the end of my business van lease?

This is dependent on the type of van leasing agreement you have opted for. In simple terms, the options are as follows:

Do I have to pay the Final Rental?

Can I terminate my lease agreement early?

Can I buy my van at the end of my agreement?

For further information on finance options, please contact us and speak to one of our experts.

How much will my vehicle cost if I want to buy at the end of my contract?

My van lease agreement is nearly over, what do I do now?

Can I end my Lease Agreement before the contract is due to expire?

If you have further questions on ending your van leasing agreement early, please call our team on 01179625314. We’d be happy to walk you through your options

Fiat Ducato in silver

Leasing:

Do you do short term rentals for 6 months or less?

Can I lease a van?

Do you provide short term van leasing agreements?

I’m a new driver. Can I still lease a van?

I want to upgrade my vehicle before my current agreement is up, is this possible?

Can I Lease a Van from Global Vans for ‘Hire and Reward’ purposes?

I’m a courier, can I lease a van for my business?

What is included in a lease agreement?

Do Global Vans also lease cars?

What are the costs involved in leasing a vehicle?

Do Global Vans accept part-exchanges?

How does van leasing work?

Is leasing a vehicle better than buying?

How old do I need to be to lease a vehicle?

What ID will I need to lease a van?

Can I lease a vehicle if I’m self-employed?

Do you supply both Personal and Business Contracts?

Will my lease vehicle be brand new?

Who will own my lease vehicle?

Isuzu D-Max pick up truck in blue

Tax and VAT:

Is VAT included in my monthly rental payments?

Can I still lease a van if I’m not VAT registered?

I’m VAT registered; how do I claim back the VAT I’ve already paid?

Am I in charge of making sure my vehicle is taxed?

Is my new van lease tax deductible?

What is Commercial Vehicle Tax?

What is Company Car Tax?

Nissan Nv300 showing the ply lined load space available in the cargo area

Insurance:

What is GAP insurance and do I need it?

If you need further information on GAP Insurance please contact our team on 01179625314

Do I need fully comprehensive insurance on my lease vehicle?

Is insurance included in my rental payments?

I’ve been involved in an accident, who do I contact?

Who will insure my vehicle?

White Mercedes-Benz Luton

General:

Why isn’t it the price on your website? / What are the prices shown based off?

To get a no obligation, personalised quote on any vehicle, please call our expert Van Leasing Team on 01179625314

What is the delivery time?

If you have any questions about specific vehicle delivery times, please call our experts on 01179625314

Can I see the van?

Is it cheaper to go directly to a main dealer?

Can I sign write my van and add internal racking?

I’ve ordered my van, what happens now?

I want to add accessories to my new van. Can you provide that?

Why do I need ply lining in my new van?

I haven’t received my V5C registration certificate?

What is a pre-registered vehicle?

Can I add a private registration plate to my new van?

I’ve ordered my vehicle, where is it coming from?

My vehicle has arrived, but something’s wrong. What do I do?

Can I customise my vehicle?

I need a tow bar on my vehicle, can this be added?

Can I have specialist locks fitted on my van for increased security?

Contact our van leasing experts on 01179625314 to talk through the locks available to you.

How do I contact Customer Support?

How do I contact the Sales Team member I’ve been speaking to?

I’ve been given a better quote from another company; can Global Vans beat it?

My circumstances have changed, can I cancel my order?

What do I do if I get a speeding ticket or parking fine?

I’m already leasing a van with Global Vans; can I also take out another lease?

Can my new van be driven abroad?

I need a parking permit; how do I get hold of the necessary documents?

What costs are involved in running a van?

Which vans are available to lease with Global Vans?

I can’t find the vehicle I want on your site; can you help?

How to I find out what vehicles you have in stock?

Do I have to collect my van?

Can you deliver to my address or my place of work?

Can someone else drive my vehicle?

For someone else to be able to drive your lease vehicle, they must:

Can Global Vans supply fleets?

How are you able to provide such low prices? What’s the catch?

I’ve moved house, who do I need to notify about my change of address?

Large van leasing deals available on Maxus Deliver 9

Van Leasing and Mileage

What happens if I go over my mileage?

How many miles can I do?

Can I amend my agreed mileage during my van lease?

How is my mileage relevant to my van lease agreement?

I tend to do a lot of miles, is there an upper limit to the mileage I can agree to in my contract?

My vehicle has arrived with delivery mileage, is this counted towards my mileage allowance?

How accurate do I need to be with the mileage allowance in my finance agreement?

Why do miles effect the cost of the vehicle lease?

What is a mileage allowance?

Silver L1 Ford Transit Connect van lease deals

Maintenance and Servicing

Can you explain the Manufacturer’s Warranty on my van?

Can I take my new van to my local garage for servicing?

Do I need to get additional breakdown cover for my lease van?

My van leasing agreement is subject to excess damage charges. How much wear and tear is acceptable?

What sort of vehicle faults are covered in the manufacturer’s warranty?

Are Services covered by the Manufacturer’s Warranty?

What do I do if my vehicle develops a fault?

What happens if my vehicle breaks down?

When will I need to get my first MOT?

Do I have to get my new van serviced?

What do I do if there is damage to my vehicle?

Will I be charged if there is minor damage to my vehicle?

Can I get a courtesy vehicle if mine breaks down?

Will Global Vans let me know when my service is due?

Who should I contact about a Warranty claim?

Will my new vehicle be covered by a warranty?

Who will maintain my vehicle?

Cheap Van Leasing Deals VW Tiguan

Glossary of Van Leasing Terminology

Van Leasing involves a lot of terminology; we’ve put together the list below explaining some of the common terms.

Agreement Period: How long the deal takes from enquiry to signing.

APR: This stands for annual percentage rate and it’s a simple way to compare one deal with another: the lower the APR, the cheaper the loan.

Arrears: If you have missed a payment to your finance company, and therefore owe them a sum, you will be in arrears.

Base Rate: The interest rate that funders use to calculate interest on loans. When general interest rates change, the base rate normally changes too.

B.I.K Benefit in Kind: This is the company car tax. If an employee has a vehicle given to them by their employer, they have to pay tax from their personal salary. As of 6th April 2020 it is based on P11D value, the amount of Co2 emissions and how much they get taxed from their personal salary, (23% or 40%).

Broker: Intermediary individual or company used for commercial transactions and negotiations.

BVRLA (British Vehicle Rental & Leasing Association): The UK trade body for vehicle leasing companies.


Car Downtime: When your car is off the road for servicing or repairs.


Car Uptime: When your car is on the road and you can use it.

Commercial Use: This refers to when a vehicle is leased and solely used by a business and for business reasons.

Contract: This is the agreement between yourself and the finance company, setting out all of the agreed payments, their schedule and any other stipulations. This may also be referred to as the Lease Agreement.


Contract Amendment: If you change the type of finance deal, the time limit, or the mileage limit during the deal, this is called a contract amendment.

Contract Mileage: Agreed estimated annual mileage of the lease vehicle over the term of the contract.

Credit Score: This is a calculation of an individual’s creditworthiness, based on past reliability in making repayments. This is used by the finance company to determine how much of a financial risk they are taking when deciding whether or not to approve a customer for finance.


De-hire: When your car has reached the end of the deal and is no longer on hire.

Delivery Charge: All manufacturers charge one. It is classed as a charge for delivery from the factory to the dealership.

Delivery Lead Time: Expected length of time between ordering your vehicle and when it will be delivered.

Delivery Note: On delivery of the vehicle, the customer will sign this as acceptance of the vehicle and its condition.


Depreciation: The amount of value your car loses as it ages.

Director’s Guarantee: Some finance companies will require a Director’s Guarantee to approve funding for a lease. This means the company Director accepts financial responsibility in the event that the company cannot pay.

Early Settlement: Paying off the remaining finance left on a van lease before the agreement has come to an end.


Early Termination: Cancelling the van leasing deal before it is due to end.

Effective rental: Applies to Contract Hire/Finance Lease. This is the bottom line figure a company will pay on a monthly rental once they have claimed back their VAT.

Equity: If your vehicle is worth more than the finance you have left to pay, then you will have equity.

Excess mileage: When you exceed the mileage limit of your van leasing deal. You will be charged at a pre-agreed rate for every extra mile over the mileage limit (see ‘Pooling’)


Extension: A formal agreement to extend the length of the van leasing deal.

Factory Order: This refers to when a vehicle has to be requested to be built at the manufacturer’s factory.

FCA: The Financial Conduct Authority (FCA) are the independent regulator responsible for financial services firms.


Final payment: The last payment of the van leasing deal.

Finance Proposal/Application: This is the form we will fill out so that you can be approved for funding by the finance company.

Fuel Economy: This refers to how much petrol or diesel your vehicle will use. The more miles to the gallon your vehicle can do, the better the fuel economy.

Funder: Also referred to as the finance company or lender. Your funder provides the funds that enable you to lease your vehicle, therefore any monthly payments are made to them.


GAP Insurance: GAP stands for guaranteed asset protection. If your car is written off or stolen, your car insurance will pay out the car’s market value. That pay-out can fall short of the amount you still owe on the finance deal. GAP insurance covers that shortfall by paying out the difference.


Initial Payment: Sometimes called IP, this is a payment you make before the car/van is delivered.

Initial Rental: This the amount put down as the first payment towards your vehicle. This generally comprises of 3x the monthly quoted cost.

Lease Term: Refers to the length of the lease agreed at the start of the contract. Standard Lease Terms are between 2 and 5 years.

List Price: Cost of the vehicle on the manufacturer’s price list. Usually shown on quotes including VAT. This does not include any extras, delivery, RFL, etc.

Maintenance: Refers to any upkeep executed on the vehicle to ensure it remains at the expected level of performance.


Minimum Guaranteed Future Value: Also known as MGFV or Guaranteed Future Residual Value. It is the lowest amount that your car is guaranteed to be worth at the end of a contract purchase deal.

Monthly Payment: How much you have agreed to pay each month for the duration of your vehicle lease.

Negative Equity: This is when the vehicle is worth less than the amount left to pay for it


P11D Value/Tax list price: This is the total value of the vehicle in the eyes of the taxman. This price should include any accessories, first registration fee, 12 months VED/RFL, delivery charges and VAT etc.

Part Exchange: When leasing a vehicle, you can exchange your current vehicle alongside your new van leasing deal. You will then pay for the cost of the new vehicle, less the value of your old vehicle. (It is worth noting that the part-exchange payment is made to yourself. You can then choose to put this towards the Deposit/Initial Payment on your new van leasing deal).


Payment: The amount payable on a purchase agreement (H.P, Lease Purchase, Contract Purchase). No VAT to add.

PCN: A Penalty Charge Notice (PCN) is issued by a council for parking or driving offences.


Pooling: A way of calculating excess mileage (see above) for a number of cars/vans on the same fleet.

Primary Lease Period/Term: The initial time period agreed to in a lease agreement. When this period has ended the vehicle is either returned, bought, sold, or a secondary lease period is entered into.

Purchase Option: This refers to the opportunity to buy the vehicle at the end of the contract. The price of which will have been calculated to equal the residual value of the vehicle and stated in the contract.

Renewal: At the end of your lease agreement, you will be able to take out a new van leasing deal. This is referred to as a renewal.


Rental: The amount payable on a rental agreement (Contract Hire and Finance Lease). Always + VAT.


Residual Risk: The risk that the vehicle will not meet its anticipated future disposal value.


Residual value: The amount the car/van is worth at the end of the van leasing agreement.


RFL (Road Fund License): Road Tax

Sale and leaseback: When you own a car and sell it to a fleet provider, who then leases it back to you.


Secondary Rental: If you want to keep renting the vehicle once the original deal is up, you arrange another van leasing deal. This is called a secondary rental.

Total Loss: A term used by insurance companies when the cost of repairing a vehicle exceeds the value of the vehicle.


Total OTR (On the Road cost)/Invoice Value: Is the total price that the finance company will pay for the car including VAT & 12 months road fund license. All vehicles new or used must be supplied with 12 months RFL.


Underwriting: In most circumstances, companies wanting to proceed with acquiring a leased vehicle will have to be underwritten by the finance company, even if they already have vehicles with them/us. The underwriters are looking to see if you/the company can pay the monthly amount and how reliable you/the company will be at meeting this commitment. They assess the risk of approving you for finance using not only the monthly figure, but also the total cost of the vehicle.

Uninsured Recovery Loss: The recovery of costs not covered by your insurance.


VAT: Value Added Tax


VED Vehicle Excise Duty (RFL Road Fund License): This is also more commonly referred to as Road Tax. All light commercial vehicle’s (LCVs) will be subject to the same annual road tax.