FAQs

Contract Hire is a popular van leasing option that allows businesses to rent a vehicle for an agreed period and mileage. The monthly payments are fixed, and the leasing company assumes the risks associated with depreciation and disposal. Benefits include:

• Up to 100% tax deductibility, depending on the vehicle's cost.
• Minimal initial expenditure and fixed monthly costs.
• Reclaimable VAT on rentals if VAT-registered.
• Optional add-ons like maintenance and roadside assistance.

This option is ideal for businesses seeking predictable expenses without the hassle of vehicle ownership.

A Van Finance Lease is suitable for businesses that want to manage their vehicle administration and have the asset appear on their balance sheet. Unlike Contract Hire, you can choose to pay the entire cost over the lease period or opt for lower monthly payments with a final balloon payment based on the vehicle's anticipated resale value. Advantages include:

• VAT reclaimable on rentals.
• 100% tax deductible payments.
• Fixed payments throughout the agreement.
• No penalty charges for additional mileage or damage at the end of the agreement.

This option offers flexibility and potential cost savings for businesses.

Hire Purchase is a traditional van leasing option where the business acquires ownership of the vehicle once all payments, including the purchase payment, have been made. It's ideal for VAT-registered companies that want eventual ownership. Advantages include:

• Fixed monthly cost.
• Ownership at the end of the lease.
• Flexible contract.
• Balloon Payment option.
• Low initial outlay.
• Finance not subject to VAT.
• Interest reclaimable against tax.
• Writing down allowance. This option is suitable for businesses looking to own their vehicle in the long term.

Yes, many leasing providers work with new businesses and sole traders. While approval depends on your financial background, you may be asked for additional documents or a larger initial payment. Some funders may accept applications with a supporting director's personal guarantee if your company has filed only one set of accounts.

Most van lease packages can include options for maintenance, servicing, and even breakdown cover. This takes the hassle out of managing your vehicle and keeps you on the road with minimal downtime. It's important to discuss your requirements with the leasing company to ensure all necessary services are included.

The choice of van depends on your tools, materials, and the nature of your work. Popular models include the Ford Transit Custom, VW Transporter, and Vauxhall Vivaro — all of which can be customised for storage, shelving, lighting, and more. Discuss your specific needs with the leasing company to find a van that suits your trade requirements.