Van Fleet Finance
Many businesses already have a mix of funding options. At Van Sales UK, we will help you decide which best suits you and is the most cost-effective option moving forwards. Whether you are replacing your fleet of vans or growing it, we are here to help.
Consult with our industry expert Account Managers to choose the right finance option for your business. For more information on our key finance options, read on.
Finance Lease
When it comes to purchasing a fleet of new vans for your business, one finance option to consider is a finance lease. Here are some of the benefits of using a business finance lease to get your new fleet of vans on the road:
- Preserve capital: A business finance lease allows you access to new vans without tying up a large amount of capital upfront. This can be particularly useful if you need to use your capital for other investments or expenses.
- Fixed monthly payments: With finance lease, you’ll make fixed monthly payments over the term of the lease. This can make it easier to budget and plan for your business outgoings.
- Tax benefits: Depending on your business, you may be able to claim corporate tax deductions, offset rentals against business profits, and recover VAT on your lease rentals.
- Flexibility: finance lease offers flexible terms, allowing you to choose the length of the lease, anticipated annual mileage and has the option for offsetting a balloon payment. This can give you the flexibility to scale your business as needed.
- No damage recharges: at the end of a finance lease it is your responsibility to dispose of the van, either by private sale or part exchange. There are no inspections by the finance company resulting in additional costs.
Overall, a business finance lease can be a cost-effective and convenient way to finance a fleet of new vans for your business. It can help you preserve capital, budget more easily, and take advantage of potential tax benefits, while still giving you the use of new, reliable vans.
Contract Hire
Business contract hire is a popular financing option for companies looking to purchase a fleet of new vans. It allows businesses to acquire the vehicles they need without committing to a large upfront payment or taking on the long-term financial burden of ownership. Here are some of the key benefits of business contract hire for van fleets:
- Reduced upfront costs: With business contract hire, you only need to pay an initial deposit, which is typically a number of monthly payments upfront, between 1 and 12. This can be especially useful for growing businesses that may not have the capital to make a large upfront investment.
- Fixed monthly payments: Business contract hire typically involves making fixed monthly payments over an agreed-upon term. This can make budgeting and forecasting easier, as you know exactly how much you’ll be paying each month.
- Maintenance included: Many business contract hire agreements include maintenance and servicing as part of the monthly payment. This means you won’t have to worry about additional costs for routine upkeep or unexpected repairs.
- Tax advantages: In some cases, businesses may be able to claim tax relief on their monthly contract hire payments. This can help to offset the cost of the vehicles and make them more affordable in the long run.
- Flexibility: Business contract hire allows you to choose the term and mileage that best fits your needs. You can choose a shorter term if you expect your business to grow quickly and need to upgrade your fleet, or a longer term if you want to spread the cost out over a longer period.
Overall, business contract hire can be a cost-effective and convenient way for companies to acquire a fleet of new vans. It allows businesses to get the vehicles they need without committing to a large upfront payment or taking on the long-term financial burden of ownership.
Hire Purchase
Hire purchase is a flexible finance option that allows businesses to purchase new vans by paying for them in installments over a set period of time. This type of financing can be a great option for businesses that need to purchase any number of vans but may not have the upfront cash to do so. Here are some of the benefits of using hire purchase to finance a fleet of new vans:
- Affordability: Hire purchase allows businesses to spread the cost of their van purchases over a set period of time, making it more affordable in the short term. This can be especially beneficial for businesses that may not have a large amount of cash on hand.
- Flexibility: Hire purchase agreements can be customized to fit the specific needs of a business. The length of the finance agreement, as well as the amount of the initial deposit and monthly installments, can be adjusted to suit the business’s budget and cash flow. There are also balloon payment options to reduce the monthly payment.
- Predictable costs: With hire purchase agreements, businesses know exactly how much they will be paying each month, making it easier to budget and plan for the future.
- No upfront payment: One of the major benefits of hire purchase is that businesses do not need to make a large upfront payment. The minimum upfront payment is generally the VAT amount, which for VAT registered businesses can be reclaimed resulting in “zero deposit”.
- Ownership: After a business has made all of the required payments on a hire purchase agreement, the vans become its property. This can be a great option for businesses that want to own their fleet of vans outright.
In summary, hire purchase finance agreements can be a great option for businesses looking to purchase a fleet of new vans. It offers affordability, flexibility, predictable costs, and the opportunity to eventually own the vans outright.
Outright Purchase
Outright purchase is a common purchase option for businesses looking to acquire a fleet of new vans. There are several benefits to outright purchase that make it an attractive option for businesses.
- Ownership: When you outright purchase a fleet of vans, you become the owner of the vehicles. This means that you have complete control over how the vans are used, maintained, and modified. You can customize the vans to meet the specific needs of your business, and you don’t have to worry about returning them to the lender at the end of the financing term.
- Cost savings: Outright purchase can be a cost-effective option for businesses, especially if you plan to use the vans for a long period of time. When you finance a vehicle, you have to pay interest on the loan. Over time, this interest can add up, making the total cost of the vehicle more expensive. With outright purchase, you avoid paying interest, which can save you money in the long run.
- Flexibility: Outright purchase gives you the freedom to choose the vans that best suit your business needs. You can select the make and model that best meets the needs of your business, rather than being limited to the options available through a financing agreement.
- Predictability: With outright purchase, you know exactly what you’re paying upfront. This makes it easier to budget and plan for the future. There are no monthly payments or unexpected charges to worry about.
- Asset value: As the owner of the vans, you can build equity in the vehicles over time. This can be especially beneficial if you decide to sell the vans at a later date.
Overall, an outright purchase is a smart option for businesses that need a fleet of new vans and want the benefits of ownership, cost savings, flexibility, predictability, and asset value.