What is Van Contract Hire?
You can lease a van through contract hire, similar to finance leasing, which is where you pay a monthly fee and have a fixed mileage limit. We refer to contract hire as being similar to vehicle rental; you pay for the use of the vehicle and simply hand it back to the finance company when you are finished. The difference is that with contract hire, you do not have the choice of a balloon payment or selling the vehicle and you will be subject to damage costs and excess mileage charges. You would pay a fixed price each month for an agreed period – at the end of the contract you must return the vehicle or ask for an extension.
The initial rental or deposit is the equivalent of 1 – 12 months rentals in advance, plus the VAT on this figure. Van contract hire is also known as an operating lease but this term is rarely used. You can have the added option of a maintenance package which will give you a fixed cost for all your servicing, maintenance and tyre needs. You don’t have to worry about having to sell the vehicle at the end of the contract or any depreciation.
Things to know
The contract is mileage sensitive; meaning that if you exceed the mileage limit given you could be subject to extra fees at the end of your contract. The vehicle is subjected to an inspection, where any reconditioning costs are charged to the customer – Ideal for VAT registered larger fleet operators. Rentals are 100% allowable against taxable profits with no private use. You have total budgetary control – fixed costs, as long as you stay within the mileage. At the end of the contract, simply hand the vehicle back.
Van Contract Hire Pros & Cons
Why Crusader Vans?
Crusader Vans have supplied over 8000 vehicles to customers nationwide, we also have developed strong relationships with some of the UK’s best-known manufacturers – meaning that you can take your vehicle most places for servicing and repairs.
We have an experienced dedicated team that will keep you up-to-date on any changes on legislation and best practices, we can supply you with a wide range of vehicles from panel vans, tippers, Luton vans and double cabs to refrigerated vehicles. At Crusader Vans you can be assured that your interests take priority to us so if you have any questions contact us at 01825 573 774 email: firstname.lastname@example.org
Van Contract Hire FAQs
|Is road tax included in the contract hire agreement?||Yes, road tax and breakdown cover are included for the duration of the contract.|
|Do I need to insure for this vehicle?||Yes, you do need to have van insurance for the full term of the agreement. We can help you organise this.|
|Are leased vehicles more expensive to insure?||Whether the vehicle is leased or owned – it has nothing to do with the cost of insurance.|
|What happens at the end of the contract?||At the end of a contract hire agreement, you must return the vehicle at the end of the contract.|