0117 428 7721

Mon – Fri 8am – 6pm, Sat  8am – 1pm

sales@vansalesuk.co.uk

St Andrews Road, Avonmouth, Bristol, BS11 9BY

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Electric Van Finance

There are many van finance options available. Below is a snapshot of the options available to give you a better understanding. 

Contract Hire

Contract Hire is a simple and effective way to fund any number of vans.  Contracts range from 24 to 60 months and are tailored to your requirements.

With small initial rentals and fixed monthly costs, Contract Hire makes budgeting more simple.  Also, you have no risk of residual values at the end as you hand the van back.  Additionally, maintenance and recovery can be included in the monthly rental.  In turn, this eliminates most of the stress and financial risks of van ownership.

Advantages

• A fixed cost making budgeting more simple
• A small initial cost
• No exposure to residual value risk
• VAT recovery on the lease rentals (subject to 50% block)
• VAT is payable on each lease rental (as opposed to upfront)
• Corporation tax relief available against the lease rental charges
• Eliminates most of the stresses and financial risks of vehicle ownership
• Reduced car fleet administration

Disadvantages

• The company will be tied into a fixed contract
• No ability to profit from residual values
• There is no option for the company to purchase the vehicle
• It will be necessary to forecast the expected term and mileage for the car at the outset of the contract
• If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
• You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
• You must have fully comprehensive vehicle insurance (or third party and self-insure)

Finance lease

Finance Lease is a flexible lease option with no mileage limits or damage recharges.  For a registered company that wants to handle your own vehicle administration, Finance Lease could be perfect for you.  Another advantage is the asset is shown on your company balance sheet.

Also, Finance Lease is a VAT-beneficial option. You can pay the entire van cost over the agreed lease period, plus interest charges.  Alternatively, you can pay lower monthly rentals during the lease period with the additional of a final balloon payment.  The balloon payment is based on your expected resale value of the van.

Advantages

• Minimum capital expenditure
• Accurate monthly budgeting
• A fixed interest rate is available on all contracts
• No damage recharge as you are responsible for disposal of the vehicle
• VAT recovery on the lease rentals (subject to 50% block)
• Corporation tax relief available against the lease rental charges
• Rentals can be offset against the businesses profits

Disadvantages

• You will never own the vehicle as you must sell it to a third party at the end of the agreement
• Operating risk associated with running the vehicle at the end of the contract
• Interest rates can vary on some contracts
• You must have fully comprehensive vehicle insurance
• The company will be tied into a fixed contract
• Exposure to residual value risk for the company

Hire Purchase

Hire Purchase is a great finance option for ownership, available for both private individuals and businesses.  It’s really easy, when all payments have been made you will take ownership of the vehicle.

Usually the full cost of the vehicle will be financed. However, part of the cost can be deferred to a balloon payment.  Bear in mind, this option is only available to business users.  In this case, you will have lower monthly payments with a final payment. Then, the balloon payment is agreed based on the expected resale value of the van.

The benefits of Hire Purchase:

• Fixed monthly cost
• Ownership at the end of the agreement
• Flexible contract
• Balloon Payment
• Low initial outlay
• Business capital not tied up in a depreciating asset
• Finance not subject to VAT
• Interest reclaimable against tax
• Writing down allowance
• Road fund licence included for the first year of the contract

Outright Purchase

Not looking to finance?  No problem, you can Outright Purchase all our vans.

Outright Purchase is the easiest way to buy your next van.  You pay the cash price in full, which saves you paying additional interest.  However, from a taxation point of view, you can only claim back the write down allowances.

The advantages are:

• Ideal for those who want total ownership of their vehicles
• No Contracts or agreements
• The vehicle is yours to do with as you please from day 0

Ready to apply?

We have made our finance application simple and it can be completed online.  This will allow us to quickly and accurately get back to you with our finance decision.

At this point, you can be assured that there is no obligation to purchase a van.  Our form is quick and simple to complete, and your personal data is kept safe and secure.