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Recommended Method of Funding Vehicles |
Van leasing is the best method of funding for most businesses buying opposed to hire purchase or contract hire. This is even more so than for purchasing a car due to tax breaks. This is because funding is more flexible than the other forms of finance such as contract hire. Van's pay as little as £500 per year for personal use. Generally with van leasing you cannot take ownership at the end of the lease, because you have already experienced 100% tax relief on the financing of the rentals on the van's life. It is up to you whom you sell it to though and for how much.
- Low deposits normally 3 payments in advance but can be less
and payments of up to 60 months. It can be as little as £99!
- 100% of payments are offset against tax.
- If you want to put down a large amount this is considered an advance rental
and again is a tax break.
- So is any terminal rental, which is why it can't be depreciated by the same company after the agreement ends.
- No mileage restrictions or vehicle condition
inspection at the end. No bills at the end
- Works well with a balloon which reduces both the
monthly payment and the duration of the loan.
- Can be done without a balloon as well
- The vehicle is yours to sell at the end,
and to keep 95% of any profit.
- Possible to extend the rental an extra year at the
end in some cases, called a peppercorn.
- VAT is paid monthly, not in full, in advance like most other methods
100% of VAT reclaimable
- Suitable for VAT registered and non VAT registered buyers alike
Apply for van leasing finance

Three ways to do it
There are three variants of a van lease
- The normal
Whereby there is a small deposit of between £100 and a few thousand pounds. At the end is a balloon that generally is worth a percentage of auction price for the vehicle. Safe for you, safe for the lenders. This is the most popular type of lease.
- No terminal rental
Whereby there is no final payment. This is especially suitable when the user does an extremely high mileage.
- High deposit
Some clever people put down large deposits to avoid paying tax. Useful if you are sure how much profit your company will make next year, and you tend to get bigger discounts off the vehicle than paying cash.
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