Van Leasing provides you with options at the end of the term that you don't get with other leasing products. It is particularly useful if, for instance, you cannot accurately predict the mileage you're likely to be doing in your new van. It's also a very good option if you are planning on using the van for work that could have a detrimental impact on its condition at the end of the contract. So if you're a builder, or in a related trade, using your van to pick up materials and go on-site all day, then this may be the best way to get your new van. Contract Hire is a bit more restrictive. For example, in most cases you only have one option at the end of the contract, which is to hand it back. In this case, you would then face an excess mileage charge and potentially a costly repair bill. So Finance Lease gives you more control.
It also means that you have more options at the end of the agreement: Refinance the initial payment at the end of the term, over a further period (depending on the length of the original contract). Sell the vehicle privately, retaining the equity made after clearing the balloon payment. Part exchange your vehicle at any time during the lease, looking to clear the balloon payment and retaining any equity that is left afterwards Van Leasing provides a more flexible lease, enabling you to request an early settlement at any point during the contract. However, we recommend not settling too early, as the depreciation curve is always steeper in the first half of the agreement than in the second.
Depending on the size of the initial deposit, if you settle too early, the amount required may be more than the vehicle is worth, which could result in negative equity. The size of the discounts you enjoy when buying from us will mitigate some of this, but it still needs to be considered. This differs from Contract Hire, which can penalise you for an early termination with finance companies charging you up to 50% of outstanding monthly rentals. It provides you with all the Tax and VAT benefits that leasing provides and the VAT is spread across the contract rather than needing to pay the VAT all up front like a Contract Purchase. Overall, Van Leasing puts you in control throughout the contract giving you ownership of the equity built up in the lease and the flexibility and peace of mind at the end of the term.