Van Hire Purchase

Van Hire Purchase

Van Hire Purchase

From £199.00 +VAT per month

01656 837375

Example Lease Prices*

VAT Up Front As Lowest Deposit

If your VAT registered this is music. Its a great way to buy a van
but ask us to look at finance lease.

Defer the VAT by 3 months if  VAT registered

We have a few finance companies where you pay  say a grand per van as an upfront deposit,
and not pay the VAT for three months, to ease your cash flow cash flow.

Van Hire Purchase is easier on lower priced vans

Its great if you want to own the van perphaps for a camper van conversion

 

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Van Hire Purchase

Van hire purchase is the most simple basic form of funding. Its a loan secured against the van. Its also named Lease Purchase but lease purchase is usually with a  balloon at the end.
The goverment love hire purchase have a look here

Explode the Myths

VAT & Van Hire Purchase 
Lets explode a few myths here as things have changed a lot in recent years. Traditionally VAT is placed upfront but in recent years this has relaxed and there are a few funders out there that will defer  VAT for up to three months. In fact there are even a few funders now that will finance the VAT

Balloons
A ballon is a slang but widely accepted term for a large final payment.
Some finance companies allow percentage of the purchase price while others use quite complicated equations  and auction feeds.
Typically a balloon is worked out to about 85% of its auction value excluding any extras adjusted for mileage. Thus a driver who does 100,000 miles a year will have higher payments and a lower balloon that a 10,000 mile per annum driver

Tax
HP and Lease Purchase get a 100% tax write down all in the same year.
So it suits companies that want to shed as much as possible that financial year. Thus is you are a new start company or your profits are low finance lease is often a better method as it transfers some tax savings into later years.

Who does Van Hire Purchase  Suit?
Flat rate VAT customers for sure. Large VAT registered companies.
Customers buying a motor home, intact anyone who wishes to take ownership of the van at the end. The payments are often a great deal higher than finance lease for example.

Finance Lease Declines
If you are declined  on finance lease or contract hire we can still often get you a line of credit on HP. Its because  a banking credit check is often different  to an Experian one but our rates are far far lower than you will get from your high street lender. They rely on you walking in

Van Hire Purchase & Manufacturers

Most van sales manufacturers in the UK offer less discount if you wish to own the van.
This is becuase it can affect the reseale value as in the case of Renault Vans and Citroen Vans
DCIV

Van Lease Purchase 

Lease Purchase Deposit 
VAT upfront as a a minimum so this is favoured by a VAT registered business as it can be reclaimed. There are a few funders that will delay the VAT by up to three months. 
A larger deposit can be placed by this method also
Lease Purchase Final Payments 
A final payment is set in two ways and it really depends on the funder. Either a very large final payment based on the residual value of the van. This is mostly done by manufacturer finance companies and the mileage is often considered. Van Leasing 
Or cheaper deals are often available. Unlike many van companies we can do things on van finance other can’t due to the way they buy their vehicles.
Lease purchase is very similar to van hire purchase except it has a balloon in most cases. A good example of this would be Ford Ranger Finance 


Nissan Navara Lease
New Mercedes Vito
Citroen Relay Low Loader
Electric VW Crafter
Welfare Van
FAQ
LDV Maxus Luton
Vauxhall Vivaro


Take ownership of the van with technically no deposit and write the van go down in one swift stroke. Lease Purchase and hire purchase are really the same product but lease purchase often has a balloon.

7  Ways Of Van Finance  

Most of our competitors tend to be leasing franchises that all sell the same “specials” that tend to be basic vans purchased at the same time by the hundred. Often the vans you are offered have sat around a while. They tend to prefer contract hire as it locks you into them for some time.
We work via banks rather than by these franchises so we are not as tied in so can offer more of an array of van finance deals. This is why our vans are fresher and  deals better. There is no leasing franchise taking a cut.
All methods are tax deductible. All methods you should really have GAP Insurance Policy in case the vehicle is written off. Many commercial insurance policies will not pay new for old.

  1. Hire purchase – VAT down or VAT deferred . HP is a great way to actually buy a van. If your VAT registered claim the whole VAT amount back within three months.   Click Here.
  2. Contract Hire – This is more popular on cars than vans. Many customers think there is no credit check but there is. Its better for large fleets and doesn’t offer any advantage for less than fleets of 10. If you want to change over 10 vehicles in one go and they are basic then please get in touch. Click here for contract hire.
  3.  Lease purchase. Not always the best deal as some manufacturers offer discounts  that cannot be used on lease purchase. Its just like HP but with a final payment and once it’s paid you get automatic ownership. It’s better once again for VAT registered businesses especially if you want a T6.1 for example to keep at the end and convert to a motorhome. Sometimes a pre registered van is cheaper. Click here
  4. Finance Lease – By far the most popular method as it attracts the lowest payments . It’s gets the largest discounts from manufacturers same as contract hire. However you can fit accessories many of which you cant n contract hire
  5. Operational Lease – Is just like finance lease however you can hand back the vehicle at the end. Some of our Mercedes vans are like this
  6. Asset Finance – We can finance many products not just vans
  7. Credit Limit – Pre approve your van purchases 90 days in advance. Useful  for example if you have a contract tender.

GAP Insurance

If you write a vehicle off in say year one the insurance company may well pay you less than the settlement value. Thus through no fault of your own you may need to buy a older cheaper van to reach the same monthly payment. Click Here to buy a GAP Policy

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