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 answer is quite simple. You can choose which van to have when taking out a lease, a choice from the huge range on over of well-known makes and models. You can choose what colour it will be, what options you want and what size and specification you require. You as a customer are spreading your payments, usually monthly, over a set period of time, resulting in a cheaper deal than renting the same vehicle. This is because the finance company knows how much money they will be earning from customers because of the commitment the customer has made.

Because of the volume of vehicles that are turned over, we are able to get competitive prices and pass these directly to the customer. The net result is lower up front vehicle prices to the customer, helping to improve customer business cash flow. A customer also has the option to own or sell the vehicle at the end of the finance lease. A customer can then keep any equity that is earnt when the vehicle is put up for sale.

There is the added bonus of being able to sign write your vehicle with your own company logo and add other extras such as roof racks and interior racking.

Renting the vehicle is the alternative, but at the end of the deal when you have had enough, you will have nothing left to show. In this current econmic climate it surely doesn’t make much sense financially!!

To find out more, see how we can benefit your business with our unique van contract hire offers. Fiat van leasing and LDV Van Leasing are just some of the options out there to choose from.