This is a popular van leasing option which is available to businesses and van drivers who do not wish to pursue contract hire as the method of funding for their vehicle.

The structure of payments are very similar to what you would expect from a contract hire contract, in that you make an initial rental followed by a set number of monthly rentals (depending on the length of your contract.) However, at the end of the contract there is a final rental (sometimes referred to as a balloon payment) which you must pay.

The final rental is calculated by the finance company using the term and mileage which you provide to VanLease UK. Although there are no restrictions on mileage, it is in your best interests to accurately calculate your mileage to avoid the vehicle from falling below the final rental at the end of the contract i.e. negative equity.

What Are The Benefits of Finance Lease

• This is a flexible finance product
• Low initial rental and monthly payments
• Choose between a 24 month and 60 month contract
• You can reclaim up to 100% of the VAT (assuming you are VAT registered)
• The monthly payments are 100% tax deductible
• No strict mileage or damage re-charge penalties

Finance Lease vs Contract Hire

It is a misnomer that builders, electricians or plumbers cannot ‘lease’ their van. What is often misunderstood is that leasing is a generic term which can refer to contract hire, lease purchase or finance lease. Each of these products have certain advantages or disadvantages for the individual or business which may in turn affect their decision as to how they wish to fund their new vehicle.

As highlighted above, not everyone will want to utilise contract hire as the preferred funding solution for their van. In particular, if you operate within the building or maintenance industry, it is likely that your work will have a detrimental effect on the vehicle you use.

With contract hire, your vehicle needs to be returned at the end of the contract and so would be subject to an inspection on collection. Any damage or repair costs would subsequently be forwarded to you (together with any excess mileage costs).

In contrast, finance lease offers a more flexible solution in that you have the option to:

1. Refinance the final rental/balloon over a predetermined time e.g. 6 months or 2 years (depending on the length of the original contract);
2. Sell the vehicle, ensuring any outstanding rentals or final rentals are cleared; or
3. Liaise with your account manager at VanLease UK to arrange a part-exchange, swapping your existing vehicle for a new one.

With finance lease, control of the contract remains with you during and at the end of the contract.

How To Get the Best Finance Lease Deals

At VanLease UK, the high volumes of commercial vehicles we supply allow us to negotiate beneficial terms from our key dealer group suppliers and manufacturers. Of course these pricing advantages are passed onto our clients and customers to ensure they receive the most competitive van finance lease deals from one of the UK’s official suppliers.

To assist you with your quote, our team at VanLease UK require you to:

• Choose your Van – use our website, or local dealership, and decide which van you want;
• Choose your Term – decide on how long you or your business will need the vehicle for; the minimum term is 2 years and the maximum is 5 years;
• Choose your Mileage – work out the annual mileage of the commercial vehicle and provide this with your enquiry;

Once we receive this information, our team will supply the most competitive and pragmatic options for you.