What is finance lease?

Advantages of finance lease include:

• Lower capital expenditure
• No damage recharge as you as responsible for disposing of the vehicle
• Accurate monthly budgeting
• Finance lease is a popular choice for VAT-registered companies because they can claim back 100% of the VAT for commercial vehicles, provided the vehicle hasn't been used for private use.
• Rentals can be offset against the business profits.

Disadvantages of finance lease include:

• As with contract hire, you will never own the vehicle. The vehicle must be sold to a third party at the end of the agreement. 
• Interest rates can vary on some contracts.
• You must have fully comprehensive insurance.

What happens at the end of the contract?

At the end of the contract, the vehicle will need to be sold to a third party. This allows your company to benefit from any equity if it is sold for a profit. However, if the sale price is below the agreed residual value, you will be liable to make a further payment to the finance company.

What is Van Business Contract Hire?

Van Business Contract Hire represents the purest form of leasing and stands as our most favoured package. You pay a monthly fee to enjoy the use of your van and have the convenience of returning it at the conclusion of your lease.

Van Contract Hire offers several benefits, including initial payments that typically rank as the lowest among all available choices, affordable monthly instalments, and the assurance of not being left with a depreciated asset when your contract concludes.

What is Van Contract Purchase?

Van Contract Purchase, on the other hand, is designed for individuals who genuinely wish to own their van at the lease's end. In contrast to the other two alternatives, Contract Purchase provides the opportunity for personal ownership of the van.

With this option, you still benefit from fixed monthly payments, though they do tend to be somewhat higher than the alternatives. It's important to note that a final payment will be your responsibility in this case.