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Moderator David@stives

  • Posts: 8829
best way to buy a van
« on: August 20, 2006, 01:13:40 pm »
After some confusion about which way is best to purchase a new van, I have collected some info off the net for you all to see

Hire Purchase
The oldest and most traditional form of finance and is still popular today.

Low Deposit - Vat Only
Flexible Repayment period - up to 60 months
Fixed Monthly Repayment aids budgetary control and cashflow
Monthly repayments are vat free
VAT deposit reclaimable (VAT registered customers)
100% of interest charges can be offset against taxable profits
Vehicle is an asset on your balance sheet and benefits from
writing down allowances.
Year 1 - 40% Year 2 - 25% Year 3 - 25% etc...etc...
Ownership of vehicle will pass when the agreement is completed
Ideal for those who require ownership of the vehicle
If ownership is a priority then this is a cost-effective route to purchasing your vehicle.

Contract Hire
Comprehensive, fixed cost solution where use of your commercial vehicle is important, but without the responsibilities of ownership. Essentially an operating lease with an optional full maintenance package. Mileage sensitive - be careful!

Deposits are anything from 1 rental upwards
Total budgetary control - fixed costs, as long as you stay within the mileage
Monthly repayments are subject to VAT - VAT recoverable
Rentals are 100% allowable against taxable profits
Fixed maintenance package can be added to include services, repairs, tyres and all fair wear and tear, dependant on contract type
At the end of the contract, simply hand the vehicle back
The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer - Ideal for VAT registered larger fleet operators.
One of the obvious benefits of contract hire is that you know the overall finance cost of your vehicle from the outset. If you include a maintenance package then all your finance and running costs are set from the beginning, For companies running fleets of ten or more vehicles this low risk method can greatly reduce the hassles in managing your fleet.

Finance Lease/ Lease purchase

This facility provides the customer with the benefits of ownership with minimum deposit and maximum flexibility.

Deposits are usually the equivalent of three rentals but can be any amount whatsoever
Repayment period of up to 60 months
VAT is paid on the payments, then claimed back quarterly (if VAT registered)
Rentals are 100% allowable against taxable profits
Facility can have a balloon profile, which defers a large payment to the end of the contract - thus reducing monthly rental and aiding cashflow
Vehicle sold or part-exchanged at end of contract hirer benefits from 95% of sales proceeds (ex. VAT)
Ideal for non-VAT registered business users looking for low initial deposit and maximum flexibility
NO MILEAGE RESTRICTIONS !!
many more customers are opting for Finance Lease rather than contract hire for a number of reasons but the main one is that Finance Lease allows the customer - and not the finance company - to profit from the sale of the vehicle at the end of the contract. To increase the customer’s potential equity at the end of the contract,


Mini Lease
 Mini Lease is the perfect way to bridge the gap between daily rental and contract hire. Whether you have a new member of staff whose van is not immediately available, need a van for a short term contract or have a seasonal requirement, Mini Lease is the answer.

A cost saving solution
You can hire a van from Mini Lease for any period from 28 days to 12 months, saving your company up to 40% on the cost of daily rental. With no termination charges after 28 days you can return the van whenever you like.


I hope you find this info useful

Dave






jayjackson

  • Posts: 36
Re: best way to buy a van
« Reply #1 on: August 20, 2006, 02:51:08 pm »
Hi,
Good info, just wondering if anyone knows where I can get a finance lease on a new van, smallest monthly payment/deposit and no millage restrictions. Can't seem to see this deal when going to the major van manufacturers sites. Any links would be great. Big tia.
Jay
London, Greater London, England, UK

ronaldo

  • Posts: 840
Re: best way to buy a van
« Reply #2 on: August 20, 2006, 03:54:38 pm »
Cash.
A bad days fishing is better than a good days work !

Moderator David@stives

  • Posts: 8829
Re: best way to buy a van
« Reply #3 on: August 20, 2006, 04:07:32 pm »
finance lease is the same as lease purchase, I have corrected the above post

Lease purchase will give better search results in google

http://www.fleetdirectory.co.uk/lease_purchase/

jayjackson

  • Posts: 36
Re: best way to buy a van
« Reply #4 on: August 20, 2006, 04:27:10 pm »
Thanks ;)
London, Greater London, England, UK

Jon T.C.

  • Posts: 592
Re: best way to buy a van
« Reply #5 on: August 20, 2006, 05:29:51 pm »
my mate had a cracking deal from these www.vansdirect.co.uk
Elite Cleaning Solutions

stephen d

  • Posts: 154
Re: best way to buy a van
« Reply #6 on: August 20, 2006, 10:33:40 pm »
plenty of companies to compare in the auto trader

JM123

  • Posts: 2095
Re: best way to buy a van
« Reply #7 on: August 20, 2006, 10:36:18 pm »
i know some people who know some people who rob some people - I've founds vans to be very cheap from them - noticed they can always get you what you are looking for, but the ignition key is usually broke ???
Live life in the fast lane.......if you break down you'll freewheel further

Ballymena N.I