Want to drive a new van every few years? Van contract hire might be the perfect solution for you.
If you are interested in driving a brand-new van but don't want to commit to ownership, we have a solution for you. Van contract hire offers the flexibility of selecting your term, mileage and initial rental to get to a fixed monthly rental for easier budgeting. At the end of the agreement, you simply hand back the van.
This is a great way to drive the latest model, while paying low, fixed monthly rentals. These payments are often lower compared to other van finance options. This is because you are simply paying the difference between the van's price as new and its predicted value at the end of the contract.
After you have found your perfect van, it's time to set up your van contract hire agreement. Simply request a quote based on your chosen initial rental, annual mileage and the length of your contract. The agreement usually varies from two to five years. Once you have completed your finance application and order, all you need to do is wait for the van to be delivered.
During the agreement, you will pay fixed monthly rental payments. When you reach the end of your contract, you will return the van back. And you're then ready to take on a new van contract hire agreement! It's important to note that if you exceed your set annual mileage, you can expect additional charges at the end of your van contract hire agreement. This will be calculated based on pence per mile. So, make sure you agree to a reasonable mileage limit to avoid extra charges. Additionally, if your vehicle does not the vehicle does not adhere to the 'fair wear and tear' guidelines, you may be charged extra.
If you don't want the hassle of van ownership, contract hire is a good option for you.
You get to drive a brand-new van every few years. Also, your monthly rental payments are likely to be lower compared to other van finance options.
It's a great option for businesses with no capital to purchase a van outright. With different contract lengths available, you can choose the one that suits you best.
If you are looking to buy a new van on finance, hire purchase is a great option. It allows you to take ownership of the van once you have made your final payment.
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Thanks to its flexibility, van leasing is a popular way to get a new van. After you have paid an advance rental, you continue paying monthly rental payments. At the end of the contract, you will sell the van to cover the final balloon payment. Anything you make from the sale in excess of the balloon payment, you can keep the vast majority.
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Your monthly rental payments are calculated based on the amount of initial rental, annual mileage and the length of the contract. You can change the monthly rentals by paying more upfront. However, you must pay a minimum of three monthly rentals at the start of the contract.
Your finance quote will be in a format of, for example, '3+35'. In this example, you have paid three months rental in advance, which is followed by 35 monthly rental payments.
Also, if your annual mileage is higher than average, you can expect to pay more in monthly rentals. In addition, the length of your contract affects the cost of your rental payments.
Yes, you must hand the van back when your agreement ends. After you have returned the vehicle, you can take on a new contract.
It varies from two to five years. You can customise the length of the contract for your business needs.
Both van finance options are great options for your business. The key difference is more options at the end of the contract.
With van leasing, you pay monthly rental payments similar to van contract hire. At the end of the contract you will sell the van to cover the final balloon payment. Anything you make from the sale in excess of the balloon payment, you can keep the vast majority.
It is possible but depends on your finance provider. If you want to terminate your van contract hire agreement ahead of time, get in touch with your finance provider to request a settlement figure.
This covers the amount between what you owe to the finance provider and what you have already paid. However, this is not always possible, so we recommend contacting your finance provider for more information.
Yes, you can claim 100% of the VAT back when taking on a van contract hire agreement if the van is used solely for business purposes.
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