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When you come to the end of your van lease term, the process of concluding your agreement will vary depending on which type of van finance you took out.
Once you come to the conclusion of your van leasing agreement, you will be compelled to sell the van and take out a new lease.
By selling the van on behalf of the finance company, it is possible to earn a profit from the sale. The profit is any of the sale proceeds in excess of the final balloon payment, which can then be used to contribute to a new van lease agreement. See how balloon figures are structured in our Finance Options guide.
If you are a VAT-registered business, you can also claim this back (full relief rules in the Tax Benefits guide).
A contract hire agreement differs from van leasing as it is mandatory that the van is returned, and you cannot assume ownership of the van.
The type of agreement is ideal for those who aren't interested in owning a van and, as with van leasing agreements, you can claim VAT back if you are a VAT-registered business. For broader cash-flow gains, see How Leasing Helps Business Growth.
At the end of a hire purchase (HP), you have the choice to either purchase the van outright or return it.
If you want to own the van outright beyond the end of the hire purchase agreement term, you have the option to pay a purchase fee, which will transfer title ownership of the van to you.
Alternatively, you can return the van at the end of the contract hire period.
Will I be reminded before my van lease expires?
We will be in touch to inform you that your van lease is concluding in good time and present the options available to you for when the time comes.
Can I extend my van lease?
It is not possible to extend your van lease beyond the term of the original agreement. Instead, you'll have to take out a new van lease, but this gives you the opportunity to drive another brand-new van.
Arranging a van lease agreement couldn't be easier. Simply find your chosen van, get in touch and we'll sort the rest.
Will there be additional charges at the end of the van leasing agreement?
You will avoid any additional charges at the end of your lease provided you have not exceeded the van mileage limit agreed at the beginning of the term and the van is returned without damage.
If you have exceeded your mileage cap, additional charges will be calculated on a pence per mile basis. It's better to inform the finance company prior to exceeding the limit if you anticipate doing so.
How do I return my van when my contract hire agreement ends?
We will collect the van from your home or base, so you won't have to worry about returning the van to us.
On the day, we'll assess the condition of the van to determine whether it has suffered damage beyond the scope of general wear and tear guidelines.
What should I do before I return my van?
It is beneficial to give your van a thorough clean inside and out to allow our assessors determine the condition of the vehicle upon its return.
You won't incur any additional costs beyond what is deemed general wear and tear, so cleaning and valeting the van beforehand will present the vehicle in its best condition.
It will also be worth considering whether any repairs should be completed prior to returning the van as this may prove more cost-effective than allowing them to be graded down during the assessment and potentially incur charges. If you have anymore questions please see our Van Leasing FAQs guide.