Financing Your Van

Contract Hire

Comprehensive, fixed cost solution where use of your commercial vehicle is important, but without the responsibilities of ownership. Essentially an operating lease with full maintenance package. Mileage sensitive - be careful!

Deposits are anything from 3 rentals 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 subject to an inspection, where any reconditioning costs are charged to the customer - ideal for VAT registered larger fleet operators

Finance Lease

This facility provides the customer with the benefits of ownership with the minimum deposit and maximum flexibility

Deposits are usually the equivalent of three rentals but can be any amount whatsoever
Repayment period of up to 60 months
VAT is paid monthly, then claimed back quarterly (if VAT registered)
Rentals are 100% allowable against tax profits
Facility can have a balloon profile, which defers a large payment to the end of contract - thus reducing monthly rental and adding cash flow
Vehicle sold or part exchanged at end of contract, the hirer benefits from 95% of sale proceeds (excluding VAT)
Ideal for non-VAT registered business users looking for a low initial deposit and maximum flexibility
No mileage clauses

Hire Purchase

If ownership is a priority then this is a cost effective route to purchasing your vehicle.

Low Deposit - VAT Only
Flexible repayment period - up to 60 months
Fixed monthly repayment aid budgetary control and cash flow
Monthly repayments are VAT free
VAT Deposit reclaimable (VAT registered customers)
100% of interest charges can be offset against taxable profits
Vehicle is an asset on your balance sheet and benefits from writing down allowances
- Year 1 - 40%
- Year 2 - 25%
- Year 3 - 25%
Ownership of vehicle will pass when the agreement is completed
Ideal for those who require ownership of the vehicle