Finance

For many businesses across the UK, commercial vehicles form an integral part of their day-to-day operations.

Whether you run one van or a fleet of vans, we are here to help, once you have chosen the right vehicle, how you finance it is often the next consideration. We offer numerous ways to finance your next vehicle and are more than happy to discuss which is the most suitable for you and your business.

Below is a snapshot of the most common options and a brief description of the product, please click through to see more info and please do get in touch with one of our advisors to obtain a formal quotation and discuss in more detail.

Contract Hire

Contract Hire is ultimately a long-term rental agreement, normally over a period of between 24 - 60 months and based on a predetermined contracted mileage, you can also choose to include a full maintenance package at a fixed additional monthly cost.

With the option of small initial rentals and a fixed monthly cost, Contract Hire offers manageable monthly payment to suit your business. Also, there is no residual value risk, you simply hand the vehicle back at the end of the contract**

Contract Hire is not suitable for businesses that want to own the vehicle or that use them ins certain industries that attract high levels of damage.

For More info on Contract Hire

For more information on end of contract charges please see our Fair Wear & Tear Guide

**Exceeding the agreed mileage and/or returning with damage outside of the BVRLA Fair Wear & Tear guidelines can incur end of contract costs.

Finance Lease

Finance Lease is a very common way to finance commercial vehicles, a fixed-term rental agreement with the finance company retaining ownership.

An initial rental will be paid, followed by monthly rentals. Sometimes there will also be a higher final rental, which will depend on the vehicle's expected value. All rentals are subject to VAT

Finance Lease unlike Contract Hire, requires you to sell the vehicle at the end of contract. The Lessee will typically receive 97.5 percent of the purchase price, less the final rental if applicable. The balance of the proceeds (usually 2.5%) will be paid to the finance company (the Lessor).

If you have an agreement with a high final rental amount and the final rental price is lower than the sale price, you will need to make up any difference. You are not though liable for excess mileage or damage charges as you would be on Contract Hire.

For More info on Finance Lease

Hire Purchase

For those who are certain they want to own a vehicle, Hire Purchase is normally the best option. The vehicle title will be transferred to the owner upon completion of the contract. You are fully responsible for the depreciation and disposal of the vehicle.

It is more affordable than purchasing a van outright, as you are able to spread the cost of the van over a fixed period.

You cannot sell the vehicle or dispose of it without permission from the lender prior to having fully settled the finance agreement. This route is often used by businesses if they plan to keep the vehicle for a prolonged period or are looking to convert the vehicle.

You will pay an initial payment of between 10% to 50% of the vehicles value and the remaining balance monthly over an agreed period, usually between 24 - 60 months.

After all payments have been made, you will fully own the vehicle.

For More info on Hire Purchase