How Does Van Leasing Work? | VIP Gatewa

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How Does Van Leasing Work?

Understand van leasing, exactly how it works and why leasing might be the best option for you.

What Is Van Leasing?

Van leasing, also known as contract hire, is essentially a long-term rental which allows an individual to drive a new car, usually covered by a manufacturer's warranty, for an agreed period of time for a fixed monthly fee.

Van leasing is becoming increasingly more popular as it gives drivers peace-of-mind by allowing them to pay a fixed monthly fee without having to worry about the depreciation value of the vehicle.

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Van Leasing Special Offers

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Van Contract Hire

There are 4 main parts which make up a contract hire agreement:

Initial Rental

The initial rental is an up-front payment made on your lease vehicle. Typically, the more you pay upfront, the less the monthly rental will be.

Contract Term

The contract term refers to how long you would like the leasing agreement to last (24 months, 36 months, 48 months...). Generally, the longer you lease a vehicle, the less the monthly rental will be.

Annual Mileage

It is important to select the correct annual mileage to fit your requirements. Excess mileage charges may apply.

Maintenance

It is your responsibility to ensure your lease vehicle is correctly maintained in-line with the manufacturer advised service schedule. For complete peace-of-mind a maintenance package can be included in your lease agreement for a fixed monthly fee.

For more information about vehicle maintenance click here

Van Leasing

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Type of Van Leasing

Personal Contract Hire

An initial rental followed by a monthly rental over a chosen term. At the end of the term, the car is handed back to the leasing finance company. You are then able to choose a new car. Annual mileage is selected at the beginning of the lease to your requirements.

Business Contract Hire

Business Contract hire follows the same terms as personal contract hire. The main differences are that contract hire is suitable for sole traders, partnerships and limited companies. Limited companies are able to claim back 50% of the VAT on monthly rentals and 100% of VAT on maintenance costs.

Finance Lease

A popular form of funding where rentals are chosen over a term followed by a residual value rental. The risk and rewards of ownership are held with the customer. To learn more about finance lease click here. (Link)

Want to know more about leasing? Call 0161 814 9623