October 29, 2019
Our team of new van experts at Vansdirect take an in-depth look at van finance and investigate which of our cheap van finance options is best for your business.
Van Finance options should be specific to you and your business, at Vansdirect we regularly get asked the difference between each of the options we have available to finance our new cheap vans.
A popular option is van leasing: A van lease (finance lease) package is aimed at being cheap and affordable and tends to be a good option for SME’s and sole traders.
Contract Hire is another option, aimed at convenience. Contract Hire is principally a rental on a long-term scale, you may also add maintenance if you so wish (covering servicing, brakes and tyres). At the end of the term, you hand the van back.
The third option is Hire Purchase, the only option available where you own the new van at the end of the term.
When deciding which option is best for you, a number of factors need to be considered: deposit, term length, mileage restrictions, potential damage to the van and whether you’d like to own the van at the end of the term. Let’s take a more in-depth view of each of our finance packages, from a van lease to van hire purchase!
Whichever option you choose to finance our cheap vans, you will be required to pay a £500 to secure the van, once you have been accepted for finance/or refused this is refunded! If you then change your mind after paying the deposit and having been accepted for finance, then this is not refunded as we already have secured the new van for you.
The company responsible for the finance also requires a minimum initial payment of 3 monthly rentals (however this can be larger if you wish to reduce monthly payments). All of Vansdirect van finance options are available on terms from 2 to 5 years and have a year’s breakdown cover and free UK wide delivery!
The van leasing package involves an initial deposit (minimum of 3 monthly rentals), monthly payments and a final balloon payment which is covered by you selling the van to a third party. You cannot own the van with a van lease. The size of the balloon payment is calculated using your projected mileage and van’s age at the end of the term.
Van leasing is the most flexible of our options, however there are restrictions in terms of mileage and custom modifications need to be approved by the finance company prior to them being applied. You can sign-write a finance lease van, though it is suggested you use removable vinyl to avoid damage which may effect the possible resale value of the van.
Van contract hire requires a similar initial payment to that of van leasing, with the minimum deposit being 3 monthly rentals. You then pay a monthly fee and hand the van back at the end. The monthly fee takes mileage into consideration and if you exceed the mileage you will be required to pay a fee per mile that you have gone over. You cannot own the van with the contract hire package.
In terms of restrictions, van contract hire is less flexible than van leasing: Firstly with exceeding mileage and when handing the van back, if any repairs are required you will be liable, so try to avoid any damages and extensive mileage.
Van hire purchase is the only finance option which allows you to own the van at the end of the agreement. The deposit is usually the full VAT of the vehicle, however this can be more if you wish and in kind your monthly payments will be reduced. There are no restrictions (within reason) with hire purchase; so use it as you please, cover as much mileage as you wish, convert it as you wish or plaster it with branding… The new van is yours after all!
At Vansdirect we have a wide range new vans for sale, all available with the comprehensive range cheap van finance options above. Call us today on 0800 169 69 95 or enquire online to get the ball rolling on a brand new van on finance today!