Finance Lease For Vans

finance lease deals for vans

 

 What is a Finance Lease?

Finance leasing for vans is a leasing option available to businesses.  It is particularly popular with professionals who use vans for business as there are no damage re-charges.


Benefits of finance lease 

Finance Lease is a flexible option which allows payment of the entire cost over an agreed period or lower monthly payments with a final 'balloon' payment.


The main points

  • The vehicle will appear on the balance sheet as an asset.
  • VAT is recoverable on rentals (subject to certain restrictions).
  • Rentals can be offset against profit.
  • There are no mileage restrictions.  However excess mileage will effect a vehicle's value at the end of the contract - be aware of 'unlimited mileage' deals.
  • In today's economic climate we would advise you to be wary of finance lease agreements, as the balloon payment that you pay at the end of the contract may be more than the value of the vehicle (please contact us for guidance if you are unsure about this).
  • You will receive road tax for the first year.

What happens at the end of the lease? 

At the end of the contract, you will have to pay a balloon payment. Once the balloon payment has been made there are two options available:

Option 1 - Continue to use the vehicle

A secondary rental (peppercorn rental) will be invoiced annually in advance. The peppercorn rental will be payable annually until you decide to sell the vehicle.

Option 2 - Cease using the vehicle

You sell the vehicle to a third party. Once sold, a copy of the sales invoice must be sent to the Finance Company together with 2% of the sales proceeds. You retain 98% of the sales proceeds.


Like what you see?

Interested in using a finance lease for your next vehicle? Give us a call and we can explain the best options for your particular credit situation.

PHONE US ON
01254 771142 or 07770 988026

 OR FILL OUT A VEHICLE ENQUIRY FORM

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