New Van Finance

If you’d like us to arrange finance, whether it’s contract hire, lease or hire purchase, we’ll send our fiance proposal form over for you to complete. It’s a straightforward form requesting information about the business and it’s directors, partners or proprietors. This information is passed on to the finance company who will then do a credit search to assess the risk and hopefully accept the deal. Submitting a finance proposal does not commit you to ordering a van with us. Only when it’s been accepted and the loan approved will we ask if you want to confirm the order. If you’re happy to proceed, the finance documents will be sent to you for signing and the supplying dealer asked to finalise the delivery arrangments directly with you. For your peace of mind, we hold both consumer credit and data protection licences.

Leasing a Van on Contract Hire

When use is more important than ownership, contract hire will provide a fixed cost, off balance sheet funding solution for your van fleet. Rentals are calculated to cover depreciation and associated finance charges over a fixed term within a pre-determined mileage allowance. A range of maintenance packages are also available, as is the option to add any accessories (racks, tow bars, signwriting etc.) that you may need providing the opportunity for completely accurate budget forecasting. As a revenue expense, the rentals are 100% allowable against taxable profits and the vat is fully reclaimable if you are a vat registered business. Disposal is no longer a problem for you as the van is simply returned to the leasing company at the end of the contract relieving you of the pressure to maximise its sale value. You simply take out a contract for anew van and start again.

Leasing a Van on Finance Lease

Finance Lease works very much in the same way as Contract Hire in terms of rental profile and tax allowances but, importantly, with greater flexibility to benefit you, the van user. There’s the possibility of positive equity, which can be used for the deposit on your next van. You have the option of extending the lease into a secondary period for a nominal, “peppercorn rental”, so that you determine the replacement cycle yourself and you won’t suffer if you over estimate your annual mileage, you’ll just enjoy a better resale value! Vat is again paid on the monthly rentals and, if you are registered for it, reclaimed on a quarterly basis in the normal way. Finance Lease is a simple, efficient way of funding the acquisition of your new van.

Buying a Van on Hire Purchase

The traditional method of spreading the cost of buying a new van. You put down a deposit, funders usually like to see the vat amount as a minimum but it is negotiable, and then pay off the balance over anything from 2 to 5 years. After the final payment you own the van outright. As it’s a purchase, the van is included on your balance sheet as an asset and you benefit from the “writing down” allowances available to you. The interest charges can be set against your taxable profits and the vat amount reclaimed in full if you are registered for it. Hire Purchase will give you ownership, ease your cash flow, release your working capital for more profitable investment and maintain your alternative lines of credit for other use. That’s why it’s so popular.