Van Contract Hire

Van Contract Hire (or van leasing as it is sometimes called) is simply a method of long term rental, linked to a mileage allowance, which can provide you a fixed monthly payment for the vehicle you want.

You can choose how long you want to keep the commercial van for, and simply send it back at the end of the contract and order a new vehicle. It is a really simple way to budget and fix your motoring costs, as all you do is insure and put fuel in your vehicle. Why buy a van when they will lose value over time? Van Contract Hire "Operational Leasing" protects you from the depreciation risk of owning a vehicle and can include maintenance cover/breakdown cover (optional), vehicle excise duty and much more. This method of vehicle funding is ideal for companies who do not want to tie up cash buying vehicles outright or have the financial risk of running their own car or van fleets.

Reduce the administration of buying, servicing (if part of the contract) and disposing of vehicles by contract hiring. Just hand the vehicle back at the end of the contract and order a brand new vehicle - it's as easy as that! Below are a list of the advantages and benefits of contract hire leasing and the things you need to know about this method of vehicle finance. Please have a look at all the points so you are fully informed about this subject.

• Even though a vehicle actually costs more to buy, the van contract hire lease rental for a more expensive vehicle may be less, due to the method of setting a contract hire rental. This is due to the different depreciation rates of vehicles.
• Van Contract Hire initial payments are usually three months rental but flexibility can sometimes be offered.
• Thereafter one fixed monthly payment, payable by direct debit, covers most costs, providing better cash flow forecasting.
• Enjoy the contract hire and leasing company purchasing spend power and discounts as they buy in bulk to gain big discounts.
• Freedom from disposal worries and risk, as the job of selling the vehicle is down to the leasing company.
• The driver of the vehicle may be able to buy the vehicle at the of the contract subject to the purchase price offered by the contract hire company being acceptable to both parties.
• The vehicle leasing company recovers the VAT on the vehicle purchase, which means the vehicle costs less to finance. This financial benefit is reflected in the rental you pay.
• Van Contract Hire provides "off balance sheet" financing which is useful when your company has high borrowings elsewhere.
• Reduced administration and risk as maintenance, mechanical repair, replacement car, breakdown recovery, tyres, batteries and exhausts can be part of the contract hire package.
• Vehicle Excise Duty (Road Fund Licence) is normally included on either non maintenance or with maintenance contract hire. 

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