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23rd Jan 2020 - Most of our deals are based on 10k miles per annum but we can adjust that to suit your preferred mileage plus we can change the term to between 2 years and 5 years and the initial payment from 1 to any figure that suits you, just ask and well make it happen.

Van Leasing Explained

Confused about finance options? Below you will find a brief overview of the differences between the main finance options. If you would like a more in-depth analysis of the options available to you please do not hesitate to contact us. Although we are able to make suggestions on suitable finance options, finance for business can be complicated and we strongly recommend consulting your accountant to see what is suitable for your business.

Finance Lease

  • The deposit is the equivalent of 1 – 9 months rental in advance, plus the VAT for the deposit
  • Repayment period of between 24 and 60 months
  • VAT is paid monthly, then claimed back quarterly (if VAT registered)
  • Rentals are 100% allowable against taxable profits
  • Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
  • Vehicle sold or part-exchanged at end of contract with the hirer keeping 95% of the sales proceeds (ex. VAT)
  • Best for non-VAT registered business users looking for low initial deposit and maximum flexibility
  • No mileage restrictions apply.

Contract Hire

  • The deposit is the equivalent of 1 – 9 months rental in advance, plus the VAT for the deposit
  • Contract Hire is essentially the same as finance lease but with the added bonus of a maintenance package and without the hassle of having to sell the vehicle at the end of the contract. Sometimes called an operating lease.
  • Deposits are anything from 1 rental upwards
  • Total budgetary control - fixed costs, as long as you stay within the mileage
  • Monthly repayments are subject to VAT - VAT recoverable
  • Rentals are 100% allowable against taxable profits
  • Fixed maintenance package to include services, repairs, tyres, dependant on contract type
  • At the end of the contract, simply hand the vehicle back
  • The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer but which is governed by the code of conduct set out by the BVRLA, of which we are a full member- Ideal for VAT registered larger fleet operators.
  • The contract is mileage sensitive.

Lease Purchase

  • The deposit is the equivalent of 1 – 9 months rental in advance, plus the VAT for the deposit
  • Identical to the finance lease agreement.
  • At the end of the period, you sell the vehicle to a third party for a reasonable market value and then buy the vehicle back for a £1. A simple paper work exercise, whereby you send an invoice to the third party company and they send an invoice back to you for the invoice amount plus a £1.
  • Forward a copy of your invoice, with a cheque for 5% of the sales proceeds to the finance company
  • You right down 100% of the cost and keep the vehicle at the end of the period.
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