Van Finance Options Explained
Having your own van is a crucial asset for many business owners and tradesmen. No matter the size or scale of your business, a commercial vehicle is invaluable in the efficient running and growth of a business.
However, at Van Sales UK, we understand that buying a van upfront can be a huge financial commitment and isn’t always possible. Fortunately, there are multiple finance options to choose from when selecting a van.
As navigating the world of finance options can be difficult, here’s a quick guide explaining the different variations.
Contract Hire
The first and most common method of finance offered is contract hire. Put simply, contract hire is a long term rental agreement which involves paying a set monthly fee over a course of 24 to 60 months.
There are a number of advantages to using contract hire as opposed to full ownership. For example, breakdown cover, maintenance and servicing can be included in the monthly costs. This is a great option for those needing to lease a van with a fixed cost to improve budgeting.
The downside to this form of rental is the rigidity of the contract that the renter is tied into., meaning there is no option to purchase the vehicle and it is returned at the end of the rental period.
Finance Lease
Compared to contract hire, Finance Leases are a much more flexible lease option. This option is favoured among businesses needing vans, cars and other commercial vehicles where contract hire is not a viable option.
Essentially, by using a finance lease a company is able to hire a car for a period of time, paying monthly fees for its rental, before selling the vehicle to a third party at the end of the contract.
One of the main benefits of a finance lease is that businesses are able to handle their own vehicle administration, display the assets on their balance sheet and receive corporation tax relief.
Hire Purchase
The third finance option available through Van Sales UK is known as hire purchase. This option is a brilliant choice for commercial businesses and individuals. The premise of hire purchase is simple; an individual makes regular monthly payments for the rental of the van or the vehicle and, when the payments and final ‘balloon payment’ have been made, the van belongs to the customer.
These types of flexible financial contracts are perfect for individuals and businesses wanting to purchase a van over a period of time, while still being able to use the vehicle.
Van Finance Through Van Sales UK
If you are a business owner or individual looking to purchase or lease a van using one of our finance options, get in touch. Our expert team are always happy to help and can guide you through the different options available to find the best fit for your business.
What’s more, Van Sales UK uses a simple online finance application process which makes it quick and easy to reach a decision.
To discuss financing and ask any questions, call us today on 0117 428 7721 or send an email to sales@vansalesuk.co.uk
