Posts Tagged ‘commercial vehicle leasing’

Leasing a van on a contract hire agreement

Sunday, March 14th, 2010

There are a number of different ways to finance a deal on a new van which include: van lease, personal contract purchase, van contract hire, lease purchase and van loans. The variety of vehicle financing options available today can be confusing so I thought I would focus on ‘contract hire’ and explain how this technique works.

Leasing deals with one of the biggest issues associated with the acquisition of new vehicles and that is depreciation. The value of your brand new van falls through the floor, even before you have driven away from your supplier.

When you take out a van lease the residual value of your chosen van or van is calculated. This is the estimated value of the vehicle at the end of the agreed lease period, usually 2 or 3 years, based on your expected mileage in that period. This calculated residual value is then deducted from the manufacturers retail price and the remaining sum is divided up into monthly payments that you will pay over the lease period. So the higher the residual value in comparison with the current value, the less you will be paying each month.

Contract hire is a popular vehicle financing technique that isparticularly beneficial for customers who are registered for VAT such as small businesses and self employed people. If your vehicle is used exclusively for business purposes you can reclaim 100% of the VAT. Even if you use your van or van for some personal use you can still reclaim 50% of the VAT.

In a contract hire agreement you actually hire the vehicle for an agreed period, usually for between 12 and 60 months during which time a fixed rental is paid, based upon the mileage. You will return the vehicle to your supplier at the end of your contract hire period, much the same as a van leasing contract. You will not be surprised by any unforeseen disposal or depreciation costs.

Van Contract hire will generally include full vehicle maintenance which can optionally include routine servicing and even replacement tyres. Up to 100% of the rental charges can be offset against taxable profits and minimal capital outlay is required.

It’s therefore no surprise that contract hire is the favoured financing option chosen by many businesses and self-employed people.

I am often asked whether these types of deals are extended to pick up truck leasing or small van leasing, as opposed to just van leasing. Yes, is the answer, with a host of competative pricing waiting to be discussed by Mark Williams.

For van leasing I would recommend Mark Williams Vehicle contracts.


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What makes a white van man

Monday, November 30th, 2009

How do you identify the main criteria to obtaining recognition as a ‘white van man’? Perhaps the obvious starting point is to own a white van, that said, you could still be excluded from the fraternity. What follows is a list of experiences that to me would guarantee acceptance for anyone into the ‘special club’.

Complete disregard for other road users

Now, this is vitally important if you wish to become a member of this club. It can’t be a small bending of the rules here or there, or minor irregularities with the highway code. There has to be no abiding by the rules! If you are driving down a narrow county road, for example, you cannot safely negociate passage past another vehicle. If it is possible you have to force the other vehicle to stop for you, or better still, completely run the other person off the road. if you can adhieve this without caring at all, then you are a larger step closer to your goal.

Dominate your steet with your vehicle

The councils in most towns and cities have awoken to the idea that there is lots of money to be made by parking enforcement. Parking space outside your own house is now prime space, and you are not even guaranteed a parking slot nearby. But where does ‘white van man’ fit into this? Our bloke probably owns more than one or two cars and parks the van outside his house too, consuming more space than anyone else in the street. If you are able to do this and not care what is thought of you, then you will be a prime candidate for the accolade!

If you wish to qualify as a ‘white van man’ check out commercial vehicle leasing has provided a simple way of getting hold of a van. LDV van leasing and Iveco van leasing are just some of the options out there to choose from.


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Businesses Saved by Vehicle Leasing

Monday, August 10th, 2009

Van leasing has saved many businesses from going bust in these challenging economic times. There are many businesses who have been forced to take a long hard look at their finances by the current economic downturn. Commercial vehicle leasing provides businesses with an effective way to ensure that they have the transport they need with fixed, known monthly repayments.

Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. These include:

  • Fixed, known monthly payments enabling businesses to accurately forecast their finances;
  • Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
  • Maintenance and servicing can be included in the lease price which can save a lot of headaches;
  • Leasing is a great way to lessen the impact of depreciation;
  • The leasing company can often provide commercial vehicle insurance at very competitive rates;
  • No problems disposing of vehicles at the end of the lease period;
  • There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.

Although van leasing is generally advantageous there are a few points that should be considered. One important thing that you may need to do is to estimate your anticipated maximum mileage over the course of a year. Some contracts impose penalties if the anticipated mileage is exceeded but there are contracts that provided unlimited mileage.

Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Some contracts provide free replacement windscreens and tyres, but others may not.

You should always gather a number of quotations when researching van leasing options and be certain that you are comparing the exact same models. Be certain that you are comparing the same models of vehicles with all of the same options.

Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.


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