A Finance Lease is the process of leasing a vehicle on fixed monthly payments, VAT is charged the monthly rentals, not the initial cost of the vehicle.
The other option would be to pay lower monthly payments during the lease period is with a final “balloon” payment based on the expected resale value of the vehicle.
It will be your responsibility to sale the vehicle at the end of the contract. If the sale of the vehicle is above the predetermined final “balloon” payment then you will be claim the equity. If the sale of the vehicle is above the price of the final payment then you will need to cover the rest. The final fee will be calculated from the expected mileage over the contract.
The monthly rental payments of the vehicle are 100% VAT recoverable on all commercial vehicles. There is also no large deposit for the van and the monthly payments tend to be on the low side.
We will have the option to choose how long you would like a contract to last between 2-5 years providing you the flexibility to suit your budget. There is more flexibility where you can settle the agreement early.
Other benefits include no strict penalty costs for exceeding mileage or minor damages (just be aware that if there is significant damage to the vehicle or if you exceed mileage significantly). This is particularly useful if you are using a van where the condition is more than likely going to be affected during the agreement.
So, if you are a plumber, electrician, construction worker or working in any related trade and you are looking for a brand-new van then this might be the best financing option for you.
While there are few options for choosing van leasing for your vehicle, you won’t be able to own the vehicle at the end of the contract. The options you get to take at the end of the contract include refinancing the final rental, selling the van privately and retaining the equity made after clearing the final rental or you can pay the final rental payment and enter a secondary period where you will pay a one-off yearly payment.
Insurance is not covered as part of the finance lease contract, so you will need to find your insurance. Make sure you have found your insurance before taking your van or pickup on the road.
