Finance Lease For Vans

Van finance leasing offers an engaging and effective way to fund vans and various types of commercial vehicles.

While some similarities exist, vehicle leasing in the U.K. is often confused with Contract Hire. Leasing is a distinct funding option that presents a cost-efficient approach, particularly for assets like vans and commercial vehicles, which typically experience higher depreciation rates than cars.

Both contract hire and leasing payments are determined based on the future value of the van, with significant manufacturer discounts included in the pricing. The main distinction lies in contract hire, where the van is subject to specific mileage and condition requirements upon return to the contract hire company at the end of the term.

A key benefit of van leasing is the absence of rigid mileage restrictions; guidelines are used to calculate the final payment or balloon rental, which is backed by the sales proceeds, as explained in the video above. It’s important to note that the lessor bears responsibility for the final rental amount and any losses incurred from the sales proceeds, while also enjoying any potential profits.

At the end of the lease, the lessee can either arrange for the vehicle's sale and receive any profit as a refund of rentals or choose a peppercorn rental to retain the vehicle for a nominal annual fee. Choosing between contract hire and leasing ultimately depends on the specific needs and circumstances of the business, as each option provides unique advantages and considerations.