Van Leasing & Finance
If your business needs a new van but you don’t want to buy one outright, then Saffron Financial are here to advise you on a few different funding options that could work for you.
Firstly, let’s take a look at everything you need to know about leasing a van, or buying a van on finance.
There are only two types of Van Finance, Leasing and Hire Purchase. Whichever type of finance you chose, there is a huge range of vans you could get.
The main lender will offer van leasing and finance on:
- Small, medium & large vans
- Refrigerated vans
- Crew vans & minibuses
Van Leasing – Contract Hire
The first type of Van Finance is usually known as Contract Hire. It is essentially Equipment Leasing, and may also be called an Operating Lease. The key thing you need to know about Contract Hire is that this type of deal is a rental. You won’t own the van when the contract is up, and you’re essentially hiring the van for the duration of the contract.
It’s called Contract Hire, because you are a signing a contract to hire a van for a set amount of time – normally between 12 and 60 months.
Van Finance – Hire Purchase
The second type of Van Finance, also known as Lease Purchase or Hire Purchase. With this type of van funding, you’re buying a van in instalments. The key thing to know about van finance and hire purchase, is that this kind of deal is long-term. You will own the van at the end of the contract and once the payments have finished, it’s yours to keep.
It’s called Van Finance, because you’re buying the van on finance, paying in instalments, to eventually own it outright.
Finance Lease – A Mixture
The third type of finance leasing, a Finance Lease, blends together contract hire and hire purchase. That might sound confusing, but it’s effectively a lease with the option to buy at the end of the contract. When your initial finance lease period is over, you can either give the van back or pay a ‘balloon payment’ to purchase it. This payment is worked out based on the value of the van after 36 months of use, minus the money you’ve already paid in your monthly instalments. You can often finance the balloon payment too,
A finance lease is just that, a blending of leasing a van and buying it on finance. It doesn’t matter which manufacturer you choose. We working with a wide range of lenders who could help you.
Second-hand Van Finance
One of the biggest reasons to work with Saffron Financial, is that we can help you finance second-hand van too.
Just because you don’t want a brand-new van, it doesn’t mean you cant finance it. If you have any questions please get in touch with us to discuss all your options.
Vans Lease or Finance – Which Is Best?
As always with business finance, it depends on your situation! The main way to choose between van leasing and hire purchase is to think about the time period involved, and what could happen to your business in the future.