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.
What are the differences between Contract Hire, Finance Lease, and Hire Purchase?
- Contract Hire: A long term rental of 2-5 years. You are able to spread the VAT cost over the term, and options for low upfront payments are available. The vehicle in handed back at the end of the term, subject to excess mileage and damage charges.
- Finance Lease: This option (like Contract Hire) offers the possibility of low upfront payments, and VAT can be spread over the 2-5 years of the term. However, with Finance Lease you have different options at the end. You can: buy the vehicle, sell to a 3rd party, trade back, or re-finance. There are also no excess mileage charges.
- Hire Purchase: With this option VAT is paid in full upfront rather than spread over a 2-5 year term. There is no final rental payment, and no mileage charges. You retain full ownership at the end of the term.
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?
- Finance Lease and Hire purchase can be settled early and the asset (the vehicle) can be sold to cover the cost. Contract Hire has a return charge with no asset to sell; which means if you want to settle early it will cost you more.
How much do I need to put down as a Deposit?
- Standardly with Contract Hire and Finance Lease you pay down the first 3 months (plus VAT) as a deposit. You can also choose to increase this amount and pay down more up front, which will reduce your monthly payments. With Hire Purchase it’s a little different, and all of the VAT for the vehicle is paid up front with the deposit.
What happens to my £550 holding deposit?
- This holding deposit is used to secure your vehicle. If you have opted for Finance Lease then part of this deposit may be used for your RFL. This will be laid out in your quote. Once your vehicle is delivered and any invoices are cleared down this deposit will be partially or fully refunded to you.
What’s the difference between my holding deposit and the initial payment for my vehicle?
- To secure your vehicle, you will pay a £550 holding deposit. This will be returned (fully or partially) when your vehicle has been delivered. Your initial payment (also sometimes referred to as a deposit) will be sent to the finance company and is the first down payment towards your vehicle (usually 3x the quoted monthly cost).
Are there any hidden fees?
- There are no hidden fees. Everything is itemised on your personal quote for full transparency.
Do you provide van leases with no deposit?
- Yes, we offer vans for lease with as little as 1 month upfront. For example – 1+47 on a 48 month contract.
Is it possible to lease a van on a personal contract?
- Yes, it is possible to lease a van on a personal contract. However, van lease deals available to personal and business users may vary.
Is the van registered to me or the finance company?
- Dependent on which finance option you have chosen, the finance company may be the registered keeper and owner of the vehicle and will hold the V5C until the lease agreement has come to an end.
When do my monthly rental payments start?
- Your monthly rental payments will begin once your vehicle has been delivered to you.
Do I pay my monthly rental to Global Vans or the finance company?
- Monthly rental payments will be paid to the finance company, as they are funding your lease.
Who do I call if my bank details have changed?
- If the bank details you have provided for monthly rentals have changed, you need to contact the finance company who are funding your business van lease. If you are having trouble contacting them, please contact one of our expert Customer Support Team on 01179625314.
How do I contact my finance company?
- The contact information for your finance company can be found in your finance agreement.
My monthly payments are no longer affordable, what do I do?
Who provides the funding for my new vehicle?
- We work with a number of finance companies who provide funding for van leasing. We will assess all of the funding options to ensure we have found the best financing option for you. If you would like further information on our Finance Partners, please visit the Our Partners page.
How long does finance approval take?
- Once we have proposed you to the finance company for a van lease, they will perform a credit and affordability check. This can take between 1 day and a week.
- Once you have been approved, we will be able to order your vehicle and organize delivery.
Can I use a guarantor to ensure I get approved for a finance lease?
- No, you cannot use a 3rd party guarantor to ensure you’re approved for finance.
- In some cases, you can sign a DPG (Director’s Personal Guarantee) to help your company get approved for finance. This guarantees that you (the director) will pay the finance in the event that your business is unable to.
What does 3+23 or 3+35 mean in terms of vehicle leasing?
- Contracts are generally taken out over 24 months or 36 months. So, 3+23 or 3+35 is the payment breakdown calculation. 3+ denotes the initial payment (3x the monthly quoted rental), and 23 or 35 represent the number of monthly payments to follow. Depending on the deal, the initial payment can be increased/decreased to affect the monthly payments.
Do I have good credit?
- Our finance partners will conduct a credit check in order to approve you for your chosen finance option. It’s important for you to know if you have good credit, as being declined for finance may affect your credit score. If you are a home owner, or have a proven history of making payments in-full and on time, the chances are you will 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?
- When we propose you to our finance partners, they will run a credit check and determine whether or not you are a suitable candidate for their funding. It is important to remember that if you are declined by a finance company, this may adversely affect your credit score.
I haven’t been approved by the finance company, what can I do?
- If you haven’t been approved for a business van lease by one of our finance partners, you may need to think about improving your credit. If your credit is bad, you may have been declined for finance because you are considered too much of a risk to lend to. You can improve your credit by demonstrating your ability to consistently make payments in full and on time – Read More Here.
I want to lease a van; will I have to pass a credit check?
- Yes, credit checks are performed by all of our finance partners and passing a credit check is essential to your being approved for finance when taking out a lease.
Can a business van lease improve my credit?
- As with any finance agreement, whether this for a sofa, a new television or a personal vehicle, van leasing can help prove you are able to keep up with regular monthly payments in a timely manner. This in turn can maintain or improve your credit. Just as missed payments can adversely affect your credit.
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:
- Contract Hire: The vehicle is returned to the finance company at the end of the agreement.
- Hire Purchase: You can take full ownership at the end of the agreement.
- Finance Lease: Move into a secondary rental period, keep the vehicle, part exchange for a new vehicle, sell the vehicle, or re-finance the final rental payment.
Do I have to pay the Final Rental?
- The Final Rental fee on a Finance Lease can be paid at the end of the term so that you can take ownership of the vehicle. But this isn’t your only option. With a Finance Lease, you are also able to sell the vehicle on (using this money to pay the Final Rental), refinance, or trade back.
Can I terminate my lease agreement early?
- It is possible to end your contract before it’s due to expire. Early Termination can often incur a fee; this charge may vary depending on the finance company. If you have leased your vehicle using Hire Purchase or Finance Lease, it’s possible to sell your vehicle and use this to cover the cost of settling early.
Can I buy my van at the end of my agreement?
- A Hire Purchase agreement means you are paying in instalments to own the vehicle at the end.
- With a Finance Lease agreement, it is possible to buy your lease van at the end of your agreement.
- If you have chosen a Contract Hire agreement then the vehicle will go back at the end of the 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?
- Dependent on your individual agreement, buying the vehicle may involve paying the full Residual Payment/Final Rental and ending the lease. How much your vehicle costs to buy at the end of your agreement will depend on the residual value calculated by the finance company.
My van lease agreement is nearly over, what do I do now?
- We will contact you towards the end of you van lease to explain your options. If you have taken out a Contract Hire agreement you will simply hand the vehicle back. With Finance Lease agreements you can choose ownership, trade back for an upgrade and a new lease, sell the vehicle on, or re-finance.
Can I end my Lease Agreement before the contract is due to expire?
- Cancelling your policy early is referred to as Early Termination. This will generally incur a charge dependent on the retail value of your vehicle. You will only pay any negative equity.
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
Do you do short term rentals for 6 months or less?
- Our van leasing options offer leasing terms from 2-5 years, with the customer deciding how long they would like the contract to last within those times. We do not offer daily or weekly short-term leasing options, popular with people looking to hire a van for moving house etc.
Can I lease a van?
- If you are 18 or over, have a full UK driving license, and are approved by our finance partners, then you can lease a van. Simply make an enquiry and one of our expert Sales Team will get back to you to talk you through the process.
Do you provide short term van leasing agreements?
- We are a long-term leasing company and we don’t provide daily or weekly leases often used for moving house etc. Our lease lengths can vary from 2-5 years dependent on the individual customer’s needs.
I’m a new driver. Can I still lease a van?
- Providing that you have a full UK driving license and you are approved by our finance partners then you can lease a van.
I want to upgrade my vehicle before my current agreement is up, is this possible?
- Yes, upgrading your vehicle before your van leasing agreement has reached term is possible. However, there are a few things to consider here. The process will differ depending on the type of finance lease you have chosen.
- Finance Lease and Hire Purchase allow you to sell the vehicle and use this to cover the costs of settlement.
- Contract Hire has a return charge (50% of the remaining term) with no asset to sell; which means if you want to settle early you will incur charges.
Can I Lease a Van from Global Vans for ‘Hire and Reward’ purposes?
- ‘Hire and Reward’ generally refers to the delivery or transportation of goods or persons in exchange for payment. This can refer to taxis, food delivery, and couriers. As a commercial van broker, we deal mainly with couriers when it comes to ‘Hire and Reward’ businesses.
I’m a courier, can I lease a van for my business?
- It is possible to take out a van leasing deal for your courier business. As with all of our van leases, if you carry a Full UK Driving License, and you are approved by our finance partners then you can lease a van with Global Vans.
What is included in a lease agreement?
- A Full Manufacturer’s Warranty is offered, covering any manufacturing or mechanical faults for at least the first 3 years, excluding consumables. (Warranties may differ between manufacturers). (Optionally you can choose to include a maintenance package at extra cost)
- Customer Support will be provided for any questions you might have, following the delivery of your vehicle.
- Tax is an included cost on a contract hire agreement but payable on a finance lease agreement.
Do Global Vans also lease cars?
- We have a variety of car leasing options available to you. Please visit our Cars page or Contact Us and speak to one of our expert Sales Team who will help you find the right car lease option for you.
What are the costs involved in leasing a vehicle?
- To lease a vehicle, you will be required to pay down some capital upfront, however this will be significantly less than if you were buying.
- To order your vehicle you will pay a £550 holding deposit.
- You will decide how much you would like to put down as a deposit. Standardly, funders expect 3x the monthly quoted payment. You can choose to put down a larger deposit, and in turn lower your monthly payments.
- Once your vehicle has arrived you will pay a fixed monthly rental payment for the agreed term of the lease.
- RFL (Road Tax) is included in some lease agreements, and all rentals come with Manufacturer’s Warranty without any extra fees on top.
Do Global Vans accept part-exchanges?
- Yes, our process is simple and works alongside your new van leasing deal as a separate transaction.
- First, we will send a link to your mobile phone to our new online part-exchange form. This form will walk you through all of the information needed, and allow you to upload pictures of your vehicle.
- Once completed, we send your vehicle information out to our network of buyers, allowing us to find you the best possible deal.
- When a price has been agreed, our buyer will arrange the free collection of your vehicle, allowing for a reasonable overlap with the delivery of your new vehicle for the exchange of tools/accessories etc.
How does van leasing work?
- We (the broker) will source your vehicle, pair you with a funder and arrange your finance agreement.
- You will put down an initial rental fee, then pay a set monthly fee towards the cost of your vehicle.
- Depending on your individual or business needs you can choose a finance option that allows you to choose to keep, sell or give back the vehicle at the end of the agreement.
Is leasing a vehicle better than buying?
- There are many benefits to van leasing, as opposed to buying outright. With leasing, you are able to spread the cost of the vehicle throughout the term, rather than putting a lot of capital up in one go to buy.
- Van leasing also ensures you haven’t invested in a depreciating asset, as the future value is calculated up front, with flexible options at the end of the lease.
- If you are a VAT registered business or sole trader, you are able to claim back all of the VAT paid towards rental vehicles. With some finance options 100% offset against revenue for business
How old do I need to be to lease a vehicle?
- To lease a vehicle, you must be 18 years old and hold a Full UK Driving License.
What ID will I need to lease a van?
- To lease a van, you will need to provide proof of your identity. This can include a copy of your passport, your driving license, and a utility bill showing your name and correct address.
Can I lease a vehicle if I’m self-employed?
- If you are self-employed, you can lease a vehicle through your Sole Trader business or through your name. Both business and persons named in the finance proposal will be subject to a credit check. If you are approved by the finance company you will then be able to lease a van through your Sole Trader business.
Do you supply both Personal and Business Contracts?
- We supply both business and personal van leasing contracts, however the deals available may vary.
Will my lease vehicle be brand new?
- At Global Vans, our vehicles are always brand new
Who will own my lease vehicle?
- If you have taken out a Contract Hire or Finance Lease agreement, your vehicle will be owned by, and registered to the finance company. If you have taken out a Hire Purchase agreement, your vehicle will be owned by the finance company but registered to yourself until the end of the contract.
Tax and VAT:
Is VAT included in my monthly rental payments?
- All monthly payments on Finance Lease and Contract Hire will be subject to VAT. The breakdown of this will appear on your quote.
- The only exception to monthly VAT payments is if you have chosen to Hire Purchase your vehicle. In which case all of the VAT will have been paid upfront.
Can I still lease a van if I’m not VAT registered?
- You can still lease a van if you are not VAT registered, however this will mean that you will not be able to claim back the VAT on your rental.
I’m VAT registered; how do I claim back the VAT I’ve already paid?
- You can claim back your VAT when leasing a commercial vehicle for business use.
- VAT is usually claimed back quarterly by completing a VAT return form. Your VAT refund will then be calculated by HMRC, and the VAT you are able to claim back will be returned to you.
Am I in charge of making sure my vehicle is taxed?
- If you have chosen a Contract Hire van lease, then your finance company will tax your vehicle for you.
- For other finance options, it is best to discuss tax with your salesperson at the point of sale. This is because taxing can differ between funders.
Is my new van lease tax deductible?
- All rentals are subject to VAT and are 100% offset against revenue for business use.
What is Commercial Vehicle Tax?
- Unlike tax on company cars; vans and other light commercial vehicles are all subject to the same tax rate. If your vehicle has a 1 ton payload and a separate cab, then it’s a commercial vehicle.
What is Company Car Tax?
- Also referred to as Benefit-in-Kind Tax, tax on your company car will be calculated using the price of the vehicle, your earnings, it’s CO2 emissions and fuel type. Any private use of a company vehicle, even commuting, will mean it is subject to Benefit-in-Kind Tax.
What is GAP insurance and do I need it?
- GAP (Guaranteed Asset Protection) Insurance covers the shortfall that can occur following an insurance pay-out for a vehicle that has been written off or stolen, and the remaining amount of finance still owed for the vehicle.
- GAP Insurance will ensure you aren’t left to pay the remaining finance on a vehicle after it is no longer in your possession.
If you need further information on GAP Insurance please contact our team on 01179625314
Do I need fully comprehensive insurance on my lease vehicle?
- All lease vehicles must be covered by fully comprehensive insurance throughout the length of the lease. You can choose to opt for insurance arranged through one of our insurance partners or arrange your own.
Is insurance included in my rental payments?
- Insurance is not included in your rental payments. We are happy to put you in contact with our trusted motor insurance partners at CVD Insurance Services and A-Plan Insurance. If you would prefer to insure your new lease vehicle using another provider, please ensure you opt for Fully Comprehensive insurance.
I’ve been involved in an accident, who do I contact?
- As with any vehicle accident it is important that you contact your insurer as soon as possible to either notify them or make a claim.
- It is also important that you call your finance provider as any repairs, or settlement for ‘total loss’, will need to be processed and carried out to their specification.
Who will insure my vehicle?
- As the hirer you will be responsible for insuring the vehicle on a Fully Comprehensive basis.
- We will ask for an insurance certificate prior to the delivery of your vehicle.
Why isn’t it the price on your website? / What are the prices shown based off?
- Our website prices are calculated using specific deposit, term length, and mileage figures, these don’t always fit with the customer’s needs from their finance option or vehicle.
- Our prices can also vary dependent on any additional extras required by the customer. We understand that every customer has specific requirements from their vehicle and it’s our job to find the right vehicle to suit you.
To get a no obligation, personalised quote on any vehicle, please call our expert Van Leasing Team on 01179625314
What is the delivery time?
- We at Global Vans always want to ensure your van gets delivered exactly when you need it. We work closely with manufacturers and dealers to organize the delivery of your van. However, this means that ultimately, we are subject to their lead times. If you are looking for a van leasing deal on a new or popular model, or you have chosen to factory order, this may mean a longer wait.
If you have any questions about specific vehicle delivery times, please call our experts on 01179625314
Can I see the van?
- Unlike dealerships we don’t have a showroom. This allows us to cut the costs of an expensive forecourt and in turn save you money on your new van. Our vans are delivered straight to you directly from the manufacturers.
- You can find images of our vehicles on our website, alongside brochures detailing the vehicle’s specifications.
- Check out our YouTube channel for a video tour of our most popular vans.
Is it cheaper to go directly to a main dealer?
- In our 20 years of trading we have developed relationships with all of the major vehicle manufacturers, often buying batch stock of our most popular vehicles. This means that we are able to offer new vehicles at prices much lower than the main dealerships.
- Our Price Promise guarantee also means that if you happen to find a vehicle quote lower than ours, simply forward us the quote and we will beat it by 110% of the difference.
Can I sign write my van and add internal racking?
- You will be able to sign write your van and/or add internal racking. It is important to be aware that if the van is returning to the finance company at the end of your van lease, it will need to be returned to its original condition (with reasonable wear and tear allowances).
I’ve ordered my van, what happens now?
- Once your van has been ordered, our Sales Support Team will arrange your finance documents and progress your van towards delivery.
- First, you will be sent your finance documents for signing, alongside any proof of ID required.
- The signed finance documents are then sent to your finance company.
- We will liaise with the dealer to confirm the date of delivery.
- You will be asked for confirmation of the vehicle’s insurance prior to it’s delivery.
- Your vehicle will be delivered, and Global Vans has another happy customer.
I want to add accessories to my new van. Can you provide that?
- If you need roof bars, a pipe tube, parking sensors, or a rear ladder – these can be fitted to your vehicle prior to it’s delivery.
- Speak to your salesperson about any accessories you may need and they can talk you through the available options for your chosen vehicle.
Why do I need ply lining in my new van?
- By adding a ply lining to your van, you can protect yourself from unnecessary excess damage costs at the end of your van leasing deal, whilst also protecting your van against depreciation in value.
I haven’t received my V5C registration certificate?
- All new vehicles are issued with a V5C within 6 weeks of registration.
- Dependent on which finance option you have chosen, the finance company may be the registered keeper and owner of the vehicle. This means they will hold the V5C until the lease agreement has come to an end.
What is a pre-registered vehicle?
- Pre-registered vehicles have already been registered with the DVLA.
Can I add a private registration plate to my new van?
- Once you have obtained permission from the funder (the finance company) you will be able to add a private registration plate to your new vehicle.
I’ve ordered my vehicle, where is it coming from?
- We have relationships with Manufacturers and Dealerships all over the country. Where your vehicle comes from depends on where we have sourced it. Working this way ensures we can always provide you with the best possible deal on your chosen vehicle.
My vehicle has arrived, but something’s wrong. What do I do?
- In the unlikely event that there is an issue with your vehicle upon delivery this can be logged, first by the delivery driver, and secondly by our Customer Support Team who will work to ensure the issue is resolved.
Can I customise my vehicle?
- We want every one of our customers to be able to lease the exact vehicle for their specifications. This can mean factory fit additions or other accessories.
- Your vehicle needs to work for you and your business, so let us know what you need and we will help find the best possible options for you.
I need a tow bar on my vehicle, can this be added?
- When ordering your vehicle, speak to your sales person about the kinds of tow bars available for your vehicle and towing needs. These are fitted at factory level to ensure the vehicle is coded for responsive tracking when it is towing a load.
Can I have specialist locks fitted on my van for increased security?
- Dependent on your business needs you may be looking for a specific kind of lock to further ensure the security of your vehicle.
- Whether you are looking for deadlocks to secure tools and equipment kept in the vehicle, or slam locks for extra security when you’re in a hurry, we want to find the best option for you.
Contact our van leasing experts on 01179625314 to talk through the locks available to you.
How do I contact Customer Support?
- If you need to speak to a member of our Customer Support Team please call us on 01179625314. To find a team member’s extension, please visit the Meet the Team page of our website. If you’d prefer, you can also fill out our handy form HERE.
How do I contact the Sales Team member I’ve been speaking to?
- To talk to the salesperson managing your van leasing deal, call us on 01179625314 and enter their extension when prompted. If you do not know their extension, you can find it on the Meet the Team page of the website.
- You should also be able to find all of your salesperson’s contact information at the bottom of any email sent from us.
I’ve been given a better quote from another company; can Global Vans beat it?
- Our Price Promise Guarantee is simple. If you have found a lower price on the van you want, we will reduce our price by 110% of the difference. Simply forward us a copy of your best quote to [email protected] and we promise to beat it.
My circumstances have changed, can I cancel my order?
- If your circumstances have changed and you no longer wish to lease a van with us you will be able to cancel your vehicle order. This cancellation must be in writing, and you may be subject to cancellation or administrative charges. If you have any questions regarding cancellation, please do not hesitate to contact us on 01179625314.
What do I do if I get a speeding ticket or parking fine?
- If you are caught speeding or receive a parking ticket, this notice is sent to the registered owner and keeper of the vehicle.
- For most leasing options, this is the finance company. They will then forward the ticket to you to pay, often also charging a small administration fee.
I’m already leasing a van with Global Vans; can I also take out another lease?
- Yes! If you are looking to expand your fleet or you simply need another vehicle, you can take out another van lease with us.
- The process is the same, either browse our van leasing deals and make an enquiry, or call and speak to our expert Sales Team. We are happy to help!
Can my new van be driven abroad?
- Before you decide to take your leased vehicle abroad, you should contact your finance provider to ensure you have all of the relevant permissions and documentation needed.
- It is also important to check your motor insurance, and make sure you are covered to drive the vehicle abroad.
I need a parking permit; how do I get hold of the necessary documents?
- You may need a copy of your V5 registration document to obtain a parking permit for your leased vehicle.
- As the registered owner and keeper of the vehicle for the duration of your van lease agreement, the finance company will need to be contacted directly to arrange this documentation.
What costs are involved in running a van?
- There are a few different costs involved in running a van, and these should be considered when deciding which is the best van lease for you.
- You should take into account that the initial cost and further monthly payments need to be affordable for the duration of the agreement.
- Fuel costs are also a huge part of running a van. Fuel economy and eco-friendly vehicle tax breaks should be taken into consideration when choosing the right vehicle for you.
- Insurance and Road Tax costs should also be noted as running costs. You will need Fully Comprehensive insurance, and it is your responsibility to ensure your vehicle is taxed if this is not included in your lease agreement.
- Servicing and maintenance costs may be included in your new lease van’s manufacturer’s warranty; however, it is important to note which costs are covered by the warranty and for how long.
Which vans are available to lease with Global Vans?
- We offer a huge range of vans for lease, just check out our new van leasing deals or use the search bar to find the van you are interested in.
- If you can’t see the vehicle you want on our site, please contact our expert Sales Team on 01179625314 and we will search the country to find the right vehicle for you.
I can’t find the vehicle I want on your site; can you help?
- If you haven’t been able to find the vehicle you’re looking for on our site or you’re looking for a vehicle with additions for your specific business needs, we can help!
- Contact our Sales Team on 01179625314 . With our 20 years of industry knowledge, and long-held relationships with dealers and manufacturers, we will help find the perfect vehicle for you.
How to I find out what vehicles you have in stock?
- If you need to get a lease vehicle fast, simply call our sales team on 01179625314. They will have the latest knowledge on stock and vehicle lead times, and will work hard to get you the vehicle you need, exactly when you need it.
Do I have to collect my van?
- All of our vans are delivered to you, straight from the manufacturer or dealer.
Can you deliver to my address or my place of work?
- You can choose to have your vehicle delivered to either your home or business address. Please note that if you need to change your delivery address after a delivery date has been confirmed a charge may be incurred.
Can someone else drive my vehicle?
For someone else to be able to drive your lease vehicle, they must:
- Hold a Full UK Driving License
- Have permission from the person or business named on the lease
- Be a named driver on your Fully Comprehensive Insurance policy.
Can Global Vans supply fleets?
- Yes! We have relationships with all of the major manufacturers and dealers, making us uniquely qualified and able to provide you with a new fleet of vehicles no matter your business needs.
How are you able to provide such low prices? What’s the catch?
- There is no catch! We, at Global Vans, have been working in the van leasing sector for nearly 20 years. During this time, we have been able to cultivate relationships with all of the major vehicle manufacturers and dealers.
- These relationships mean that we can buy vans at prices lower than all of the main dealerships.
- We also believe that showrooms are just for show, and by choosing not to have an expensive forecourt we have been able to pass these savings on to you.
I’ve moved house, who do I need to notify about my change of address?
- If you have moved house before your vehicle is delivered, please contact our Sales Support Team on 01179625314. They will ensure your vehicle is delivered to the right address. If you have moved house during your lease agreement, you should contact your finance provider to ensure their details are up to date.
Van Leasing and Mileage
What happens if I go over my mileage?
- Your annual mileage will be agreed as part of your finance agreement. This mileage is used to calculate the residual value of your vehicle at the end of your lease.
- It is important to be aware that exceeding your mileage by a large amount may cause the vehicle to be in negative equity at the end of the contract. This is why certain finance types will charge excess mileage fees.
How many miles can I do?
- If you have opted for Finance Lease you wont be subject to any excess mileage charges. You should however avoid exceeding the annual mileage agreed dramatically, as this could mean you’re left in negative equity at the end of the agreement.
- With Contract Hire, you will have estimated your mileage and this will have been included in your contract. If you go over this estimated amount you may be subject to excess mileage fees.
- It’s important to know that the more miles you do the more you depreciate the value of your vehicle. If you do less miles than estimated, you may find that the vehicle is worth more than expected when you reach the end of the contract.
Can I amend my agreed mileage during my van lease?
- If you have chosen a Contract Hire lease agreement then you will be able to amend your agreed mileage.
- On a Finance Lease agreement, you will not be subject to excess mileage charges so there is no need to amend.
- With both options it is important to remember that the more miles on the vehicle, the more it depreciates in value. This means that if you exceed the mileage agreed, you risk being in negative equity at the end of your contract.
How is my mileage relevant to my van lease agreement?
- Mileage has a huge effect on the value of your vehicle. This value is used to calculate the leasing price of your vehicle. The more miles you do, the more the value of the vehicle will have depreciated at the end of the contract.
I tend to do a lot of miles, is there an upper limit to the mileage I can agree to in my contract?
- Most finance agreements on van leasing deals will have an upper limit of 40,000 miles per year.
- If you’re looking to exceed 40,000 miles per year, you may need to choose a Hire Purchase agreement.
My vehicle has arrived with delivery mileage, is this counted towards my mileage allowance?
- Delivery mileage is not counted towards your agreed vehicle allowance. If the delivery mileage is more than expected or you have any further questions, please contact our dedicated Customer Support Team.
How accurate do I need to be with the mileage allowance in my finance agreement?
- It is important for your estimated mileage to be accurate in order to avoid the excess mileage charges stipulated in certain finance agreements.
- An accurate estimation of mileage will also help you avoid the risk of negative equity at the end of your van lease.
Why do miles effect the cost of the vehicle lease?
- Mileage can have a huge effect on the residual value of your vehicle.
- The more miles you do during your lease the less your vehicle will be worth at the end of the agreement.
- Asset depreciation is taken into account when calculating the cost of your van leasing deal, this is why it is important to be accurate when stating your future mileage.
What is a mileage allowance?
- Your van leasing agreement will be based upon a mileage allowance; this can be anything from 5,000 to 50,000 miles per annum.
- With certain finance agreements you will be subject to a mileage allowance, and an excess mileage charge will be incurred at the end of your contract if you have exceeded your allowance. You will be advised of the pence per mile excess mileage charge at the beginning of your contract.
Maintenance and Servicing
Can you explain the Manufacturer’s Warranty on my van?
- Manufacturer warranties are in place to ensure your new vehicle is covered if any issues arise during the initial period of possession. These can include paint surface cover, wear and tear cover, and repair/replace parts cover. Specific terms and lengths of warranty may vary between individual manufacturers.
- You will be able to find the specifics of your vehicle warranty on your manufacturer’s website.
Can I take my new van to my local garage for servicing?
- Your new van will be subject to a manufacturer’s warranty. If your vehicle is ready for a service ensure you check that the garage you’re using is approved by the manufacturer, to avoid negating the manufacturer’s warranty.
Do I need to get additional breakdown cover for my lease van?
- Some manufacturer warranties include breakdown cover for the first year. It’s important for you to know if you are covered for breakdown in your warranty and to take out alternate cover if needed.
My van leasing agreement is subject to excess damage charges. How much wear and tear is acceptable?
- Each finance company will have individual specifications regarding wear and tear. These are generally built around the Fair Wear & Tear guidelines set out by the BVRLA (British Vehicle Rental and Leasing Association).
- Areas of focus include; vehicle body and paintwork, tyre wear and wheel rims, and internal condition.
What sort of vehicle faults are covered in the manufacturer’s warranty?
- Although warranties will differ between manufacturers, most will cover any manufacturing defects, electrical and mechanical faults.
- Warranties may not cover consumables or wear and tear items such as windscreen wipers and tyres. It’s important you read through the warranty on your vehicle to ensure you are clear on what is and isn’t covered, and any other stipulations.
Are Services covered by the Manufacturer’s Warranty?
- No – Services are not covered by the Manufacturer’s Warranty.
- If you choose a maintenance package (such as our Service Plus package) alongside your vehicle lease – this will include Servicing.
What do I do if my vehicle develops a fault?
- If your vehicle develops a fault, check to see if this fault falls under the Manufacturer’s Warranty. If the fault is covered by the warranty, you will be able to take the vehicle to your nearest manufacturer approved garage for a fix.
What happens if my vehicle breaks down?
- You should take your vehicle to a manufacturer approved main dealer if your vehicle has broken down.
When will I need to get my first MOT?
- New vehicles do not need an MOT for the first 3 years. If the vehicle you have leased was pre-registered, please ensure you are aware of when it will be due an MOT.
Do I have to get my new van serviced?
- It is important that you get your van serviced at the recommended intervals as not doing so may invalidate your warranty.
- Check the manufacturer warranty for your new lease vehicle and make sure you know when and where your vehicle should be serviced.
What do I do if there is damage to my vehicle?
- Damage to your vehicle could be a result of wear and tear, or due to an incident. Your manufacturer’s warranty may include wear and tear damage. For incidental damage ensure you have reported this to your insurer. For any further questions please contact our Customer Support team who will talk you through next steps.
Will I be charged if there is minor damage to my vehicle?
- Any damage to your vehicle will affect the residual value of your van at the end of the lease agreement and therefore may incur costs from the finance provider. Each finance company has specific allowances when it comes to general wear and tear and these are often based around the BVRLA Fair Wear and Tear Guidelines.
Can I get a courtesy vehicle if mine breaks down?
- If a diagnostic check from a manufacturer approved garage shows the vehicle fault as covered under warranty, you should be provided with a courtesy vehicle by the manufacturer.
Will Global Vans let me know when my service is due?
- Ensuring your vehicle meets its regular service requirements is your responsibility. When services are due, and where to take your vehicle for servicing, should be found in your Manufacturer’s Warranty.
- It is important to note that not servicing your vehicle at the required intervals may negatively affect your Manufacturer’s Warranty.
Who should I contact about a Warranty claim?
- You should contact your vehicle’s manufacturer with any claims falling under their warranty.
Will my new vehicle be covered by a warranty?
- Yes, all brand new vehicles are supplied with a Manufacturer’s Warranty. This will last at least an industry standard minimum of 3 years.
Who will maintain my vehicle?
- Maintenance can be included in your contract; this will cover scheduled services and general wear and tear of the vehicle, excluding damage. If you have any questions regarding a maintenance contract, please contact our van leasing experts to talk you through the benefits.
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.