Hire purchase

When you take out a hire purchase agreement, you will be paying a deposit equivalent to 3 months of the overall rental in advance plus VAT. The periods of payment can vary between 36 and 60 months at the limit. Your monthly payments will be exempt from VAT and your initial deposit charge can be reclaimed. One other point in its favour is the ability to offset any taxable profit – which is a good boost for any small business. At the end of the lease agreement, the van is legally yours and you are not required to make any more payments.

Finance Lease

When you take out a finance lease agreement, you will be paying a deposit of 1 to 3 months of the overall rental in advance plus VAT. Similar to the hire purchase agreement, your repayments are usually between 36 and 60 months in total. If you can claim back your VAT on the deposit, you will have a restriction of a quarterly claim only. One aspect that is appealing – if the van is sold or part-exchanged at the end of the agreement – 96% of the value is kept by the hirer.

Contract Hire

Many aspects of this type of arrangement are the same as the finance lease, with the added bonus of a maintenance package. There is also no hassle of having to sell the van at the end of the agreement. It is also known as an Operating lease within the business. Most of the criteria is the same as above including the cost of the deposit, and the recoverability of the VAT etc. So long as you stay within your agreed mileage, you can fix your costs and retain budgetary control of your agreement.

Lease Purchase

Most of the details are the same as the finance lease agreement. Where van lease differs, is at the end – you sell the vehicle to a third party for a reasonable value and buy it back for £1. Forward an invoice to the finance company with a cheque for 5% of the sale. After writing down 100% of the cost of the deal, you are then able to keep the van.

Citroen van leasing Is just another of the many options that are available to choose from.

The popular Citroen Berlingo continues to be a firm favourite with fleet operators. The Berlingo has recently been awarded the Fleet Vans best in class trophy and the car maker, Citroen, reports that the Berlingo accounts for 49.7% of the carmakers sales and Citroen lease contracts.

The Citroen Berlingo has undergone some excellent updates and now boasts a whole load of features that will ensure that this great little van continues to win accolades and praise from fleet managers and van drivers.

There are actually two distinct versions of the Berlingo van available in the United Kingdom. These are the L1 and L2. The L1 has been extended by 240mm and widened by 80mm. This compact van now boasts a larger load area and increased weight capacity. You can now fold down the passenger seat to extend the load area even further making it ideal for those longer items.

And these recent modifications aren’t limited to the vans load carrying capabilities. The revised Berlingo design is more modern, stylish and aerodynamic which results in far less noise when on the road. External modifications have been made in order to minimise the risk of minor damage by moving the front and rear lights and the windscreen has been enlarged to improve visibility. The internal design has also undergone revision to provide even more storage space including a driver side glove compartment and much larger door pockets.

But one of the most outstanding new features is available in the LX model. This featured is called Extenso Seating which provides a valuable third seat in between the front two seats. The Berlingo is the only van in its class to offer this outstanding three seat feature.

The standard Berlingo boasts a whole load of features that you would ordinarily not expect to find in vans at this price or in this class. These include electric windows, heated wing mirrors and a radio / CD player.

With all of these fantastic features you might expect the Citroen Berlingo to be an expensive option. But this van is very competitively priced. You can get a Citroen van lease deal from as little as £170 per month with various options including van lease purchase.