What is Van Lease Purchase?
You can lease a van with a lease purchase contract, where you pay an initial payment or deposit at the beginning of the arrangement and then will be required to pay monthly instalments until the full value of the vehicle is paid. It is essentially the same as van hire purchase, except you have the option of a balloon payment at the end of the period – this lowers the monthly cost but requires you to pay a lump sum at the end of the contract.
The initial payment or deposit can be any amount although a minimum of all the VAT on the purchase price must be paid – although the larger the deposit, the lower the amount you borrow. The repayment period is from 12 months up to 60 months.
Things To Know
Monthly repayments are VAT free as the VAT has already been paid. 100% of VAT deposit is reclaimable for VAT registered customers. 100% of interest charges can be offset against taxable profits. The vehicle is an asset on your balance sheet and benefits from writing down allowances. End of the contract period the vehicle is 100% owned by you once all payments have been made.
Van Lease Purchase 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 Lease Purchase FAQs
|Can you claim tax back on leasing a van?||If your business is VAT-registered you can claim 100% VAT of the monthly payments – provided that the van is only for business use.|
|Do I own the van once the lease purchase agreement has begun?||Only upon completing the final payment will you gain full ownership of the vehicle.|
|What is a terminal rental, final payment or balloon payment?||Balloon payments occur towards the end of a contract, it lowers the initial monthly payments but requires you to pay a larger final lump sum.|
|What happens if I can’t afford the final payment?||If you cannot pay the final instalment, you will have the option to re-finance the balloon payment or in some cases, continue making payments until the balloon has been paid off.|