How To Lease A Van
11 August 2017
Where do you start if you need a van to take your business to the next step? It can be a minefield when there are so many vans on the market and so many different purchasing options. So, to make it a little easier for you we've put together this handy guide, so you know you're making the right choice.
Firstly, think about what you need the vehicle to do, will you be transporting heavy items, such as tools and equipment? If so, the Ford Transit Van would be a great choice for you! If your business undertakes smaller deliveries straight to customers the Ford Transit Connect could be a better option.
Finance Options For Leasing A Van
How to lease? You have a few options, the two most popular are Business Contract Hire and Business Finance Lease. Read more about these below to work out which would be best for you and your business...
Business Finance Lease
Business customers also find Finance Lease a very popular product as it offers the benefits of ownership. VAT is only charged on the initial rental, monthly rentals and the final rental, not the initial cost of the vehicle. With a finance lease, the vehicle has a fixed monthly rental with a final rental (balloon) covering the estimated residual value of the vehicle at the end of the lease contract. The vehicle disposal is your responsibility at the end of the contract. You will retain the equity in the vehicle if the vehicle is sold above the predetermined final rental (balloon), less a small charge from the leasing company. You will be liable to cover the shortfall if the sale price is less than the final rental (balloon). The expected mileage is used to calculate the final rental over the contract. You can minimise the initial rental or capital expenditure on your behalf by financing up to 100% of the cost of the vehicle with a Finance Lease. You can agree the periodic rentals to be paid in return for the vehicle and, at the end of the term, you have the option to rent the vehicle for a nominal sum also known as a peppercorn rental or you can sell it and retain most of the proceeds. Your cash flow will be eased as VAT is payable on the rentals only, not the cost of the asset.
If you are looking for fixed cost motoring and are confident about the condition and mileage of your vehicle over a set period of time, then Contract Hire is a perfect product. It is a way which would enable you to control one of your biggest expenses and it is an easy and cost effective way to fund a vehicle. Vehicle leasing is the most popular type of leasing. With this kind of agreement, the vehicle is hired at a fixed monthly rental with a set period of time and a pre-determined mileage. At the end of the contract, you will never own the vehicle and the finance company will collect and dispose of it. Vehicle maintenance can be included as a package in the monthly rentals. The value of the vehicle, length of the contract and the agreed mileage will depend the cost of the monthly rentals.
If you're ready to take the next step, or need some more impartial advise, contact us today. We can provide you with the most suitable Ford or Volvo models tailored to you and your needs.