Van Business Contract Hire

What Is Van Contract Hire?

On a Business Contract Hire lease agreement, you pay fixed monthly rentals on the van of your choice. You don’t own the vehicle so at the end of the contract you can simply hand it back to the finance company.

Your monthly rental cost will depend on the value of the vehicle, the length of the contract (usually between 2 and 5 years) & the agreed annual mileage. You can also include a maintenance package in your monthly rentals which will help pay routine maintenance, servicing, tyres & other wearables.

Advantages:


Fixed cost motoring. Low deposit - typically equivalent to 3 monthly rentals. Choice of contract period from 24 to 60 months. Hassle free - option to add servicing and maintenance, taking away all the hassle of running a vehicle. You can control your cashflow. Free up capital - get a new vehicle without the up-front costs, freeing up money for you to invest elsewhere in your business. The risk of vehicle depreciation is eliminated. At the end of the contract, the vehicle is simply handed back without worrying about how much it might be worth. Less admin for you - The finance company deals with all the buying, maintenance and selling issues. Tax benefits - reclaim up to 100% of the VAT on all maintenance charges, the lease rental, the fees and finance element for commercial vehicles. Rentals are up to 100% allowable against corporation tax. Road Fund Licence is provided for the full term of the contract Road Fund Licence is provided for the full term of the contract. Maintenance can be included.

Disadvantages:


You will need to estimate the time and mileage for the use of the vehicle. No option to purchase the vehicle. The cost to terminate the contract early can be expensive. If you go over their agreed mileage allowance, excess mileage will be charged for each mile over that as stated in the contract. You must look after the vehicle and return it in a well maintained condition, if not you will be charged for any damage over and above as stated in the 'Fair Wear and Tear Guide'.

Why Choose Contract Hire For Vans?

Contract Hire is ideal for you if:

  • You want to drive a brand-new van without having to worry about disposing of it at the end of your contract.
  • You don't want the risk of negative equity, because you won't own the vehicle.
  • You ant everything hassle-free, like including a maintenance package.
  • You want to pay a low initial rental (a minimum of 1 month's rental) with no large final balloon payment.
  • You want to upgrade to a new vehicle hassle free at the end of your contract.

Van Contract Hire FAQs

When deciding on which van finance option to take, it's important to have all the information you need to make the right choice for you & your business. We've put together a comprehensive collection of contract hire FAQs to help you find out more.
  • Yes, you can choose between contract hire & finance lease on any of our commercial vehicles. Take a look at our latest van leasing deals to see which brand-new, in-stock vans are available.

  • All of our customers must be assessed for credit before they are accepted by the finance company (funder). Although different funders will have different underwriting criteria, some typical examples of the information needed would be:

    • Name
    • Date of Birth
    • Company name & company registration number (if a limited company)
    • Address history for the last 5 years
    • Number of years trading/ownership
    • Director details
    • Bank details
    • Email Address
  • All Contract Hire Funders will conduct a credit check. However, as all Funders have slightly different underwriting criteria, we will do our best to find the right Funder for you & your circumstances.

  • This can vary depending on the Funder. It can take as little as an hour to get a decision, but we will try to get an answer for you within 24 hours. We will sometimes get requests for further information and, in these cases, it can take slightly longer to get the final decision.

  • Most credit checks will leave a 'footprint' (which does not record the outcome of the credit check) but in most cases, only repeated checks will have a negative effect.

  • It really depends on what kind of bad credit history you have. Different Funders have different criteria & some can be more pragmatic than others. There are no guarantees, but we will always try to match you with the most appropriate Funder; sometimes this can mean we offer you a different product, such as Contract Purchase.

  • Yes, and this means we have access to all the top vehicle finance companies in the country. The amount of business we do with them means that you can enjoy the very best rates.

  • Certain funders may stipulate that you must be VAT registered but we have access to a number of funders for whom this is not a requirement. If you do become VAT registered during the course of the contract, you will be able to start claiming up to 100% of the VAT back.

  • If you're VAT registered, you can claim back up to 100% of the VAT from your monthly rentals.

  • There are limits, but you determine these at the beginning of the contract period, so it's important that you give us a realistic estimate of what your annual mileage is likely to be. But don't worry if your circumstances change. You can amend the terms of your contract to reflect a higher mileage, after the first 12 months, in order to spread the cost.

  • Usually we can work with our funding partners to explore and offer you extension offers or alternatively provide you with a variety of upgrade options.

  • With this type of contract, you simply hand back the vehicle at the end of the contract, leaving you free to contract hire a brand new van.

  • Yes, although if these are not settled straight away, the authority responsible for the offence will contact the funder who supplied the vehicle. An additional admin fee may be charged by the funder if they have to pay the fine on your behalf.

  • With Contract Hire, you have the option to include a maintenance package for an additional low monthly fee. This will cover you for routine tyres, routine maintenance, servicing & any MOT that falls within the contract duration. You can find out more about our own maintenance package - Service Plus.

  • Funders will charge for damage that is over & above what is acceptable under the BVRLA's Fair Wear & Tear Guide. It is easy to find out what would be chargeable & what would be considered 'fair wear & tear', so you have the opportunity to put right any significant damage before you return the van.

  • It's not, but we can provide you with competitive van insurance deals.

  • Your insurance premium will not increase because you have leased a vehicle on a Contract Hire agreement.

  • You can generally customise the van, provided the changes you make are legal. You cannot lower a van. Tinted windows would be permitted so long as the law was complied with, i.e. it is not legal to tint front windows. Accessories to enable you to perform your job will usually be permitted. These can be included as part of your contract, so that you pay monthly for them, or you can sometimes opt to pay for them separately.

    Explore our other finance options or take look at our latest van lease offers.