At LeaseVan, we are experienced in bringing our customers the best possible lease and rental deals on a variety of vans. There are many reasons why people choose to lease vans with us - but we take pride in our range of manufacturers, our customer service, and our fantastic range of van leasing deals.
We believe that businesses, no matter the size, should have access to the highest performing vans at the best possible prices. That’s why we offer several different financial plans for van rental.
However, one of our most popular plans is finance lease. There are many advantages for businesses who choose to buy their vehicle through finance lease. At LeaseVan, we have lots of experience in delivering and creating tailor-made rental deals for our customers. So, if you would like to learn more, here is a summary of our lease purchase agreement.How does finance lease work?
Like other financial plans offered by LeaseVan, finance lease is a long-term contract which allows our customers to pay for their van in small, regular installments.
Finance leasing is similar to purchase leasing, but it differs on one crucial detail. Both finance leasing and purchase leasing allow the customer to pay for the vehicle on a monthly basis. However, when your contract ends, the vehicle does not belong to the customer. Instead, the van is then sold on by our company and you receive a proportion of the profits.
Due to this system, the van remains the property of LeaseVan throughout the duration of the contract. In this sense, you are renting the vehicle but you are a stakeholder in the van itself.
Given that the vehicle e.g. asset is owned by LeaseVan, you won’t need to pay for any capital allowances - meaning that your monthly repayments will be cheaper overall.
The process for finance leasing a van works in the following manner. First of all, you choose the van which suits you and your businesses’ needs. Once you’ve done this, then one of our consultants will draw up a financial contract and you’ll both come to a mutual agreement about your payment options. The monthly repayments will be calculated according to the price of the car and your financial situation.
Depending on the agreement, you may be subject to mileage restrictions throughout the contractual duration. This is because the van, as an asset, will decrease in value according to its mileage and annual depreciation.
Once the contract ends, the van will be sold on to a third party. Providing that the van is bought for a higher price than the initial deposit, you will receive a proportion of the profits in return. In addition to this, if the price is lower than the balloon payment, you may be subject to making further payments to compensate for this loss.What are the advantages of finance leasing?
There are many advantages for businesses who finance lease their vans. Some of the most popular reasons include:
- Reduced costs: When people finance lease a van from us, they can enjoy reducing their upfront costs. When you purchase a van, for example, you must pay all of the fee right there and then. However, finance lease allows you to spread the cost over an agreed period of time. This makes the whole process much more appealing for many businesses.
- Flexibility: One of the other benefits of finance leasing is that you have greater flexibility in terms of your repayment options. You will help to develop a plan which suits your individual needs. Furthermore, we will never encourage you to sign an agreement dictating that you must pay back more than you can afford. We are responsible van providers.
- Interest options: Depending on the agreement, you may have the option to choose an interest rate which best fits your needs. This can include a fixed or variable interest rate. Either way, our staff will always aim to make all of finance options clear and transparent.
- Tax exemption: Individuals who finance lease a van will only pay VAT on the rental payment, not the initial purchase price. This means that it’s finance leasing is a potentially more financially-savvy investment than other payment options.
As with any financial agreement, there are potential downsides to finance leasing. The most obvious point is that you won’t own the vehicle at the end of your contact. In this sense, finance leasing is very similar to renting a property.
Due to renting the van, businesses might be subject to mileage restrictions throughout the duration of the contact. As everyone knows, vehicles will depreciate in value as a result of their usage. For this reason, it’s in the interest of LeaseVan to ensure that the depreciation costs are minimised at all costs.
Once your contract ends, the van will then be sold to a third party. If the price is lower than your initial deposit payment, then you may be subject to a fee. This is another potential downside to finance leasing.LeaseVan: Our service
At LeaseVan, we make it our responsibility to deliver a financial plan which reflects the needs of our customers. That’s why we offer several different kinds of payment options. While all of these plans are different, they all have one thing in common: we aim to make van driving affordable, comprehensive, and always enjoyable.
We understand how important it is to have your van as quickly as possible. To achieve this, we allow our customers to drive away with a brand new van on the very day of purchase. Our payment plans, furthermore, mean that you may be able to rent a van previously outwith your budget. It doesn’t matter how big or small your business is; it’s absolutely vital to have a van which goes above and beyond other vehicles.
If you would like to learn more, or have any questions about finance leasing, please contact us today.
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