Which of Our Van Finance Options is Right for Your Business?
If you’re thinking about getting a van on finance, or purchasing a commercial van outright, it’s wise to be informed before making any kind of decision. Our simple guide to our different finance options is sure to help you find the right method of purchase for your business.
In its simplest terms, purchasing a van outright will involve an upfront payment and the van will then belong to you. When you lease, however, you will pay monthly instalments, and depending on the type of lease, you will most probably give the van back to the leasing company at the end of your contract.
Contract hire is a method of leasing where you can fund a number of vans, having maintenance and recovery included in your monthly bill. You will give the van back at the end of the contract, eliminating the stress of owning the van outright. This is great for businesses looking to keep their costs down and not have to worry about owning the vehicle.
Hire purchase is slightly different, with monthly instalments until the end of your contract, where you will own the vehicle. This is great for businesses if you are looking to avoid a costly upfront payment, and you will get to own the vehicle at the end of the contract too!
A finance lease is similar to hire purchase, however, it is usually a long term van lease, and you will give back the vehicle at the end of the contract. A finance lease however, often gives an option to sell the vehicle as an agent of the leasing company, so this is good for businesses who want to avoid the large cost upfront and want to get better tax advantages. .
If you decide to purchase outright, you are at an advantage if you are looking to own the vehicle, and you won’t have to worry about monthly payments. However, the upfront costs of a van might impact your finances. Also, some vehicles depreciate in value over time so you may be losing money overall if you decide to sell the van in the future.
These are our explanations of the different finance options that we offer, but if you’re still feeling unsure about what is best for your business, head to our website to read more from a reliable van finance company.
Alternatively, for more information about our finance options, or to browse our range of vans, feel free to contact us to find out more! Our team will be happy to help you and give our expert advice.