Van leasing is a good option for businesses looking to budget more easily. It’s best suited to anyone who likes the idea of driving a new van every few years without the big expense of buying. And with the option to own the van at the end of contract, or simply returning the vehicle and walking away, it couldn’t be more flexible. With Creditplus, you’re not limited to new van leasing, as there’s plenty of choices to lease used vans as well. And it doesn’t matter if you’re a business or individual; with options on both personal van leasing and business van leasing to choose from. Want to discuss low cost van lease options? Call us today on 0333 6000 290
- Hassle free alternative to buying
- Drive a newer van without the big upfront investment
- Fixed monthly payments for easy budgeting
- Tax deductible expenses for businesses
- Optional maintenance cover can be included
If you’re new to the world van contract hire and leasing it can be confusing, as there’s lots of industry terms to get your head around. At Creditplus, we like to keep things simple, if you want a business van lease we only have two options, Business Contract Hire and Lease Purchase.
The one you choose will likely depend on whether you want to own the vehicle at the end of your contract. For clarity, business contract hire is purely a long term van lease, you hand the car back when the contract ends. With lease purchase you pay what’s known as a balloon payment and at the end of contract, you own the vehicle.
The most popular way to lease a van in the UK is business contract hire. It also differs from lease purchase in that you agree an annual mileage limit upfront, and have the option of adding in breakdown, service and maintenance, if you want.
How Does Business Contract Hire Work?
You’re looking to finance a Ford Transit valued at £35,335 inc VAT. You opt for a 48-month vehicle leasing agreement with a 10,000 annual mileage limit. You make an initial payment of £1,071 inc VAT (equivalent to 3 monthly instalments), followed by 47 monthly payments of £357 inc VAT. At the end of the contract you return the car to the lender with nothing to pay, providing the car is returned in an acceptable condition, and you have not exceeded your mileage limit.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
You are eligible if you’re aged between 18-75 years old and hold a full UK driving licence. Your acceptance for a van lease largely depends on your business or personal credit profile - you can check your eligibility here without affecting your credit score, it only takes a couple of minutes to complete and get an instant decision. Want to know more about eligibility? Visit our eligibility FAQs.
Zero deposit van leasing is unusual and typically only available to businesses or individuals with an excellent credit rating. If you have a less than perfect credit score, lenders generally require a deposit equivalent to at least 3 monthly payments. With a deposit you’re paying more upfront, but it is an effective way to lowering your ongoing monthly payments.
A good or excellent credit score is usually required for commercial van leasing, but if you have a less than perfect credit score - don’t worry. Hire purchase (HP) can be a great alternative and is usually more accepting to a wider range of credit profiles. With HP, your payments are still fixed and spread evenly over the contract period, but you have the additional benefit of having no mileage limits and owning the vehicle at the end.
Want to know more about the benefits of hire purchase? Find out about HP here.
When setting your annual mileage limit at the start of your business contract hire agreement, it’s important to consider how much you’ll be using it. As this will help you avoid paying an excess mileage charge at the end of the contract. Excess mileage is normally calculated at just a few pence per mile but can easily add up. However, if you’re clocking up more miles than anticipated, you can usually renegotiate your mileage with the lender during the agreement.
Buying a van means getting a loan or paying for it outright. The benefit is that it belongs to you. But only when the loan is paid in full. When negotiating with cash, you are in a good position to haggle down the price and get a good deal. The downside is that it means all the depreciation, servicing and repair costs, are all yours. Leasing is different, it’s a fixed monthly cost that you spread over time and you have the option to include breakdown, service and maintenance. Lease purchase gives you the option to own the vehicle at the end of the term, but with business contract hire you never own the vehicle.
Many VAT registered businesses do not realise that if you lease a vehicle exclusively for business purposes, you are able to claim back the total VAT on the monthly payment. If the van is also used as a private vehicle, you are still able to reclaim at least 50% of the VAT.
We recommend you consult your accountant to explain the full tax implications of business contract hire (BCH).
Definitely. We help companies of all sizes, from a sole trader seeking a single vehicle, to a large corporate looking to lease an entire fleet. To discuss business van leasing in more detail, call us today on 0333 6000 290.
Want To Know More?
For more loan options head over to our Hire Purchase, Lease Purchase or Personal Contract Hire pages.
Check My Eligibilityor call us on 0333 6000 290
Our Customers Love Us!
Excellent customer service. Got me a great deal and the car I was looking for! Would highly recommend to anyone!
Kyle, Kidwelly
This is the second time I’ve used Creditplus to buy a car, and to be honest, I wouldn’t really do it any other way.
Sarah, Midlothian
Clear and helpful throughout the process. Really pleased and looking forward to driving my new car.
Sian, Liverpool
At a Glance
Van leasing is a good option for businesses looking to budget more easily. It’s best suited to anyone who likes the idea of driving a new van every few years without the big expense of buying. And with the option to own the van at the end of contract, or simply returning the vehicle and walking away, it couldn’t be more flexible.
With Creditplus, you’re not limited to new van leasing, as there’s plenty of choices to lease used vans as well. And it doesn’t matter if you’re a business or individual; with options on both personal van leasing and business van leasing to choose from.
Want to discuss low cost van lease options? Call us today on 0333 6000 290
Benefits of Van Leasing
- Hassle free alternative to buying
- Drive a newer van without the big upfront investment
- Fixed monthly payments for easy budgeting
- Tax deductible expenses for businesses
- Optional maintenance cover can be included
Van Leasing Explained
If you’re new to the world van contract hire and leasing it can be confusing, as there’s lots of industry terms to get your head around. At Creditplus, we like to keep things simple, if you want a business van lease we only have two options, Business Contract Hire and Lease Purchase.
The one you choose will likely depend on whether you want to own the vehicle at the end of your contract. For clarity, business contract hire is purely a long term van lease, you hand the car back when the contract ends. With lease purchase you pay what’s known as a balloon payment and at the end of contract, you own the vehicle.
The most popular way to lease a van in the UK is business contract hire. It also differs from lease purchase in that you agree an annual mileage limit upfront, and have the option of adding in breakdown, service and maintenance, if you want.
How Does Business Contract Hire Work?
You’re looking to finance a Ford Transit valued at £35,335 inc VAT. You opt for a 48-month vehicle leasing agreement with a 10,000 annual mileage limit. You make an initial payment of £1,071 inc VAT (equivalent to 3 monthly instalments), followed by 47 monthly payments of £357 inc VAT. At the end of the contract you return the car to the lender with nothing to pay, providing the car is returned in an acceptable condition, and you have not exceeded your mileage limit.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
Business Contract Hire FAQs
You are eligible if you’re aged between 18-75 years old and hold a full UK driving licence. Your acceptance for a van lease largely depends on your business or personal credit profile - you can check your eligibility here without affecting your credit score, it only takes a couple of minutes to complete and get an instant decision. Want to know more about eligibility? Visit our eligibility FAQs.
Zero deposit van leasing is unusual and typically only available to businesses or individuals with an excellent credit rating. If you have a less than perfect credit score, lenders generally require a deposit equivalent to at least 3 monthly payments. With a deposit you’re paying more upfront, but it is an effective way to lowering your ongoing monthly payments.
A good or excellent credit score is usually required for commercial van leasing, but if you have a less than perfect credit score - don’t worry. Hire purchase (HP) can be a great alternative and is usually more accepting to a wider range of credit profiles. With HP, your payments are still fixed and spread evenly over the contract period, but you have the additional benefit of having no mileage limits and owning the vehicle at the end.
Want to know more about the benefits of hire purchase? Find out about HP here.
When setting your annual mileage limit at the start of your business contract hire agreement, it’s important to consider how much you’ll be using it. As this will help you avoid paying an excess mileage charge at the end of the contract. Excess mileage is normally calculated at just a few pence per mile but can easily add up. However, if you’re clocking up more miles than anticipated, you can usually renegotiate your mileage with the lender during the agreement.
Buying a van means getting a loan or paying for it outright. The benefit is that it belongs to you. But only when the loan is paid in full. When negotiating with cash, you are in a good position to haggle down the price and get a good deal. The downside is that it means all the depreciation, servicing and repair costs, are all yours. Leasing is different, it’s a fixed monthly cost that you spread over time and you have the option to include breakdown, service and maintenance. Lease purchase gives you the option to own the vehicle at the end of the term, but with business contract hire you never own the vehicle.
Many VAT registered businesses do not realise that if you lease a vehicle exclusively for business purposes, you are able to claim back the total VAT on the monthly payment. If the van is also used as a private vehicle, you are still able to reclaim at least 50% of the VAT.
We recommend you consult your accountant to explain the full tax implications of business contract hire (BCH).
Definitely. We help companies of all sizes, from a sole trader seeking a single vehicle, to a large corporate looking to lease an entire fleet. To discuss business van leasing in more detail, call us today on 0333 6000 290.
Want To Know More?
For more loan options head over to our Hire Purchase, Lease Purchase or Personal Contract Hire pages.
Check My EligibilityOur Customers Love Us!
Excellent customer service. Got me a great deal and the car I was looking for! Would highly recommend to anyone!
