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van leasing |
The term Van Leasing is applied to the following financial product and products. It is the most popular method of purchasing a vehicle at the moment in the UK and Eire.
- Easier credit acceptance than contract hire
- VAT is paid monthly oppose to the whole amount in advance (such as HP where you have to pay the ENTIRE VAT upfront)
- Van Leasing is treated as off your balance sheet thus it is 100% against taxable profits
- There is no penalty if you go over your expected mileage
- There is no damage check at the end.
- Discounts
Manufacturers like their product to have a high resale value Thus we can often obtain a better discount for you if the van is going onto a lease oppose to HP
- Buy it with or without a balloon
A balloon is slang for an amount of cash that is offset to the end. It means cheaper monthly figures.
- Without a balloon, or with it paid off, it is your van at the end.
The van must be sold to a third party at the end. This third party is up to you, it is just to prevent any more taxes being reclaimed by the company A percentage of 2.5 - 5 % is payable on the profits, since the banks know that you will normally make some money.
- Some occupations such as Taxi drivers we do not suggest that you have a balloon, since the vehicles tend to have far from average use and wear.
- Hand back the vehicle at the end?
This is unique to Swiss. For a small rise in monthly payment we GUARANTEE to take your vehicle back at the end. There are terms and conditions, such as damage, and mileage restrictions, but this is a great idea especially if you need a lot of vehicles. We have our own separate trade to trade website for disposals.

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