Reliable and Affordable Van Finance Options for Businesses

For many businesses across the globe, owning a van is crucial for operation. Whether it’s to deliver goods or to run general errands throughout the week, having a reliable fleet of commercial vans is key – and it’s important that these vans are well-maintained in order to maximise profit and productivity.

At Global Vans, we understand that you may not want to purchase a van outright. That’s why we offer van finance packages; we believe that selecting the right vehicle to drive your business forward should be easy and affordable. We have a range of vans on finance to suit all budgets and requirements, along with a selection of funding options to choose from.

When you choose us for your van lease, it’s easier than ever to boost your business.

Contract Hire

Our Contract Hire van leasing packages are a popular choice amongst both VAT-registered and non-VAT-registered companies, especially those looking to cut costs without compromising on financial control and flexibility. This is certainly possible with our VAT-beneficial financial package. With just one regular monthly rental payment, we’ll cover all risks (including the cost of depreciation and disposal) for a pre-agreed length of time and mileage. The package, which includes Road Fund License, also gives you the opportunity to include roadside rescue, maintenance and relief vehicle provision as extras.

The benefits of Contract Hire:

• Up to 100% tax deductible depending on cost of vehicle
• Low initial outlay
• Flexible contracts
• No residual risk
• No disposal issues
• Optional relief vehicle whilst yours is off the road
• Capital not tied up in a depreciating asset
• Fixed cost and optional maintenance
• VAT on rentals reclaimable (reduced to 50% for cars used privately)
• Road fund license included for the full contract length

The disadvantages of Contract Hire:

• Fixed term and mileage contract
• Excess mileage charges if you do more miles than your contract states
• You may need to pay excess damage charges if your vehicle has sustained more damage over the course of your agreement than is deemed ‘Fair Wear & Tear’
• Early termination of your contract can be expensive

Van Finance Lease

This kind of van lease is ideal for both VAT–registered and non-VAT registered companies who want to handle the administration of their vehicles, and have the asset shown on their balance sheet. A VAT – beneficial option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.

The benefits of Van Finance Lease:

• Business capital not tied up in a depreciating asset
• VAT on rentals reclaimable
• 100% tax deductible. Reduce your costs and get back from the government up to 40% of all payments (including your deposit).
• Spread the VAT across all your payments, (purchase agreements – all VAT is paid up front at the start of the agreement).
• All VAT payments claimed back if registered, if not registered offset it against your tax.
• Fixed payments for the whole agreement.
• Low deposits and low monthly payments.
• Flexibility – can settle early like a standard loan.
• Lower payments – can offset some capital to the end of the van lease (called final rental or residual payment)
• No penalty charges for additional mileage or damage etc at the end of the agreement.

The disadvantages of Finance Lease:

• No option to own the vehicle. You must sell to a 3rd party at the end of the agreement
• You are responsible for disposal of the vehicle at the end of the lease term
• Fully Comprehensive Insurance is required for the length of the agreement
• Varied interest rates on some agreements
• Depreciation of the vehicle is a risk taken on by customer leasing the vehicle

Hire Purchase

Ideal for VAT-registered companies that want eventual ownership of the vehicle. A funding agreement where the company acquires ownership when all payments, including the purchase payment have been made. Part of the capital cost of the vehicle payment may be deferred into a Residual or Final Rental Payment at the end of the agreement, which equates to the anticipated market value of the vehicle at the end of the agreed leasing period. This is a much more traditional van leasing option, favoured by those looking for eventual ownership of their lease vans.

The benefits of Hire Purchase:

• Fixed monthly cost
• Ownership at the end of the lease
• Flexible contract
• Balloon Payment
• Low initial outlay
• Business capital not tied up in a depreciating asset
• Finance not subject to VAT
• Interest reclaimable against tax
• Writing down allowance
• Road fund licence included for the first year of the contract

The disadvantages of Hire Purchase:

• You must pay the full VAT balance upfront alongside your initial payment
• You are liable for the entire value of the vehicle
• Fully Comprehensive insurance is required throughout your agreement
• You are fully responsible for the disposal of the vehicle
• The vehicle will appear on your company balance sheet

Do you still have questions? Contact us, and we’d be happy to answer any other van leasing queries you may have.

Make life simple, and add a Maintenance Package to your Van Lease. Click here to find out more