Want to drive the latest van models but don't want to commit to buying a vehicle outright? Van contract hire could be the perfect finance option for you.
Instead of paying monthly instalments equating to the full value of the van or towards an eventual purchase, you lease a contract hire van over a set period of time, which is usually two to five years. At the end of the contract, you return the van, leaving you free to upgrade to the newest model in our collection of van contract hire deals.
The process is similar to van leasing - but there are some major differences to bear in mind. For example, you always return the vehicle at the end of a contract hire agreement. Also, while there's less flexibility in the terms, you generally enjoy lower monthly payments compared to a van on finance lease and certainly lower than hire purchase.
Here at Vansdirect, we offer van contract hire and leasing terms that last between two and five years, in which you are required to make rental payments every month.
You choose the length of this contract, depending on how long you'd like to commit to a contract hire van. Just keep in mind that contract length is one of the factors that directly influence the size of the fixed monthly rentals.
In addition to the length of contract you choose, you also choose your expected annual mileage and how many rental payments you wish to pay up front. The initial rental payment is usually between one and twelve months.
No matter how long your contract, you must always return the vehicle at the end of a contract hire agreement. This gives you the freedom to upgrade on your van every few years, ensuring you're always driving the latest models and also, by driving a newer van you are less likely to experience costly breakdowns and maintenance events.
Depending on the terms of your contract, however, you could be liable to pay extra fees and charges. For example, if you exceeded the agreed annual mileage limit, then you'll be subject to a charge.
Always read the finer details of your contract to ensure there are no surprises at the end of the agreement. We will always make sure you are fully aware of all the conditions of an agreement before you commit.
The monthly rentals for Contract Hire are calculated based on the initial rental payment, the annual mileage cap, and the length of the contract.
The initial rental is the payment you make at the start of the contract. You can choose to pay as little as three monthly rentals in one lump sum, or up to 12 monthly rentals upfront. The subsequent monthly rentals are then calculated based on the remaining amount. A higher initial rental will result in lower monthly payments.
When you request a Van Contract Hire quote, it will be presented in the format of '3+35' for example. This means the upfront cost is three monthly rentals, followed by 35 fixed rentals until the end of the contract. For example, if the Contract Hire van costs £200 per month, you'd pay £600 as an initial rental, followed by £200 per month for 35 months.
Both the annual mileage cap and the contract length also play a role in determining the cost of the monthly rental. If you plan to drive more in your Contract Hire van, you'll need a higher annual mileage cap. This will increase the monthly payments. Exceeding the agreed annual mileage will result in an additional charge at the end of your contract, calculated based on pence per mile.
Whether you're eyeing up a small van contract hire for local business use or want to hire a large van for a national business fleet, you can find the best van contract hire deals with Vansdirect.
Maybe you want to browse the benefits of a new Fiat Ducato and its always impressive cargo space. Or perhaps you'd prefer a Peugeot Partner that makes easy work of driving in and around the city centre. You might even want to start thinking about the future with a contract hire of an electric van.
Just take a look at our collection of van deals to find your favourite contract hire van
If you've seen a van contract hire deal you want to explore further or want to ask about business contract hire vans, get the ball rolling by enquiring with Vansdirect. All you need to do is fill in your details on the enquiry form and we will be in touch to quote and with information on your next steps.
Got more questions about our van contract hire and leasing options? Get in touch with us today and a member of our team can help you with any queries and advice you on your next purchase. Or, if you're ready to start shopping, browse our new vans in stock.
Contract Hire Quotes
Contract Hire offers are often quoted as, for example, "3+35" or "6+47." This describes how your quote is structured, with the initial rental and number of subsequent monthly payments.
For example, "£200 per month, 3+35" means one up-front payment, equivalent to three monthly rentals (£600) followed by 35 fixed monthly rentals of £200 each. A total contract of 3 years.
Don't forget to consider VAT if you are not VAT registered.
Initial Rental (Up-Front Payment): The first rental is flexible. Choose to pay as little as three times the monthly rental and up to 12 times the monthly rental.
Monthly Rentals: The monthly rental amount is fixed. It is determined by factors such as your annual mileage, the length of the contract (ranging from two to five years), and the initial rental payment.
Other Details: Please be aware that mileage and usage restrictions may apply. The availability of finance is subject to the company's status and credit checks.
To assist your application, van finance companies will look for a number of the following criteria:
DISCLAIMER
All payments advertised are subject to VAT. Deposit can mean initial payment or initial rental depending on the contract type. Customers are subject to credit searching by the finance company on application.
Representative Finance Example |
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| Initial rental of £3,074.40 +VAT followed by 24 monthly rentals of £256.20 +VAT. Based on 5,000* miles per annum. |
| Business users only. *Excess mileage charge of 7p per mile. If you exceed this annual mileage then excess mileage charges will be applied by the finance provider at the end of the agreement should you choose to return the vehicle. |
| Advance rental of £2,686.18 +VAT followed by 24 monthly rentals of £223.85 +VAT with a balloon payment of £16,485.29 + VAT. Based on 5,000 miles per annum. |