Van Hire Purchase

If ownership is a priority then this is a cost-effective route to purchasing your vehicle.

• Low Deposit – VAT only
• Flexible repayment period – up to 60 months
• Fixed monthly repayment aids budgetary control and cashflow
• Monthly repayments are VAT free
• VAT deposit reclaimable (VAT registered customers)
• 100% of interest charges can be offset against taxable profits
• Vehicle is an asset on your balance sheet and benefits from writing down allowances:-
• Year 1 – 50%
• Year 2 – 25%
• Year 3 – 25%, etc etc.
• Ownership of vehicle will pass when the agreement is completed
• Ideal for those who require ownership of the vehicle 

Van Finance Lease

• This facility provides the customer with the benefits of ownership with minimum deposit and maximum flexibility.
• Deposits are usually the equivalent of three rentals, but can be any amount whatsoever
• Repayment period of up to 60 months
• VAT is paid monthly, then claimed back quarterly (if VAT registered)
• Rentals are 100% allowable against taxable profits
• Facility can have a balloon profile, which defers a large payment to the end of the contract – thus reducing monthly rental and aiding cashflow
• Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
• Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility
• No mileage clauses

Van Contract Hire

• Comprehensive, fixed cost solution where use of your commercial vehicle is important, but without the responsibilities of ownership. Essentially an operating lease with full maintenance package. Mileage sensitive – be careful!
• Deposits are anything from 3 rentals upwards
• Total budgetary control – fixed costs, as long as you stay within the mileage
• Monthly repayments are subject to VAT – VAT recoverable
• Rentals are 100% allowable against taxable profits
• Fixed maintenance package to include services, repairs, tyres, dependant on contract type
• At the end of the contract, simply hand the vehicle back
• The vehicle is subject to an inspection, where any reconditioning costs are charged to the customer – ideal for VAT registered larger fleet operator.

Please remember……..We recommend that you should always take advice from your accountant or financial advisors.