Finance

Finance Lease

Finance Lease is a flexible leasing option, much like Contract Hire it's based on a fixed contract period, set mileage and initial payment giving you a fixed monthly cost.

The vehicle is not returned to the funder though and needs to be sold to a third party at the end of the contract, this means there is no end of contract charges should the vehicle be damaged or over agreed mileage.

Most agreements have a final balloon payment due, this is set by the funder to be in line with the projected residual value, should the resale value be lower than the final payment due, you will be liable for the difference, should it be higher you will retain any profit.

A very popular way to lease commercial vehicles due to its flexibility and ability to negate end of contract charges associated with contract hire.

Hire Purchase

For those who are certain they want to own a vehicle, Hire Purchase is normally the best option. The vehicle title will be transferred to the owner upon completion of the contract. You are fully responsible for the depreciation and disposal of the vehicle. 

It is more affordable than purchasing a van outright, as you are able to spread the cost of the van over a fixed period. 

You cannot sell the vehicle or dispose of it without permission from the lender prior to having fully settled the finance agreement. This route is often used by businesses if they plan to keep the vehicle for a prolonged period or are looking to convert the vehicle. 

You will pay an initial payment of between 10% to 50% of the vehicles value and the remaining balance monthly over an agreed period, usually between 24 - 60 months. 

After all payments have been made, you will fully own the vehicle. 

For More info on Hire Purchase