Are you confused about any aspect of van leasing? If so, it could be the answer to your question is already here, if not then please feel free to post your query an we'll get back to you a response ASAP.
25 January, 2013
Thinking of trading in my Fiesta Sportvan, on reading the new brochure the dealer sent me it says that most of the fiesta van range is vehicle excise duty free, to clarify this i phoned the dealer who said that no commercial vehicle is road tax free, regardless of emissions, could you help ? , why have Ford printed that in their Fiesta van brochures ? Thanks Tony
Hi Tony, firstly thanks for the question, secondly apologies for taking so long to get back to you . It doesn't happen often but, your query certainly had a few people scratching their heads . So, having done the same as you and checking the brochure, I too called the Ford dealer that supllies our vehicles. His first response was the same as you recieved, that " no commercial vehicle is road tax free" I pointed to the text in the brochure, cue yet more scratching of heads. Several hours, calls and emails later we finally got to the bottom of it and the following communication was sent to all Ford dealers. SERIAL PN1167 DATE 28th January 2013 AUDIENCE Dealer Principal, Dealer Management, Sales Staff, Aftersales Staff KEY MESSAGE LCV Product updates ISSUE/CHANGE New Fiesta Van brochure VED statement Under the “Green” section on page 2 of the MCA Fiesta van brochure FA 1550/7, it states that “With CO2 emissions as low as 87 g/km, much of the Fiesta Van range is exempt from Vehicle Excise Duty…”. This is incorrect. All Fiesta vans are classified as N1 type vehicles and hence are subject to the VED tax banding TC39, which is currently £215. This error will be corrected in the next version of the brochure. So, your dealer was right afterall . Apologies that it probably isn't the news tyou were hoping for but I'm confident that if you want to us to quote you for your new Firsta van leasing deal. We'll more that make up for it with the deal you'll get . Please feel free to call one of the guys to get a quote on 01442 820554 Regards and thanks again for the great question Andy
09 August, 2012
I'm looking at leasing the Ford Transit connect fridge van but need a thermal printer in the cab section so we can provide our clients with confirmation of meat temperature at time of delivery. Do you offer this option and if so what is the cost??
Hi Anne-Marie, this is certainly an option we can offer and we have a supplier that specializes in these. We can add the cost of the thermal printer into the monthly lease rental for you. The cost will vary depending on whether you want the one, or two probe option, but the average additional monthly cost would be around £13 (depending on the contract length). I hope this answers your question. Best regards Andy
14 August, 2012
Hi andy i am about to start my own courier buisnes as a sole trader.My question is am i better renting or leasing a van ........many thanks mark
Hi mark Renting a van is normally done on a short term basis, typically a van rental company will only rent out the vans they operate for around 45% of the time available, when you take that into account along with the cost of insuring multiple drivers then it's not surprising that costs can range from anything from £25 per day right up to £60+ depending on the size of van required and which company you use. You might get this down to something more like £15 per day on a small van for a 30 day agreement . That is still very expensive for 30 days- i'll let you do the maths. Now that might be ok if the business your enetering into is something that is completely new to you and there is uncertainty on just how much you will be earning However, if it's a business you know and/or you have done the research and you fairly confident in the long term income potential. Then leasing a van on a longer term agreement like finance lease or contract hire would definitely be much more affordable. I hope that helps Mark, but please feel free to call any of the guys if you need help deciding on which van would best suit your requirements or you want more clarification on the costs involved . Good luck in your new venture Regards Andy
13 August, 2012
Hi Andy,I am registered as a sole trader and am just starting up on my own.Have just been informed that i need to be in business for two years and provide accounts before anyone will consider me for a finance lease deal.Is this correct and if so is there another way round it? Thanking you. Tommy Milligan.
Hi Tony and thanks for the question. The information you have been giving is NOT correct. As a sole trader you are in fact trading as a self employed individual, so Tommy Milligan Trading As etc. As such any credit application would be based on your own personal credit score. So if you're own credit history is ok then we should not have a problem setting up a lease for you and your business . I hope that helps. If you need any more advice or would like to talk through your options with one of the guys please feel free to call . In the meantime good luck with the new venture Regards Andy Alderson
06 May, 2012
I am about to start a new job for which I can choose a company car or car allowance, also I can be PAYE or self employed. I could choose a company Prius with low BIK payments, they will pay an additional per mileage amount to cover fuel, or I thought of leasing a double cab pick up. I believe I can claim tax relief on the lease payments but do I need to be self employed to do this or is it allowed for PAYE, and does it also apply if I am paid a car allowance. Also, can I claim the difference between the 45p/20p mileage rate against tax if I am paid a car allowance. I will be a 40% tax payer.
Hi Martin Firstly, yes you would need to be self employed to claim the lease rentals against tax. If you are paid a car allowance and are employed, this will be treated as normal salary for Tax and NI purposes. If you are employed, the current tax free limits for mileage reimbursement under the AMAP (Authorised Mileage Allowance Payment) scheme are 45PPM and 25PPM. If you are paid at a lower rate than these, yes you can claim the difference against your taxable income. For example, if you do 10,000 miles and are paid 25PPM, your are 20PPP X 10,000 under the limit. This equates to £2,000 which you can offset against your salary. So in other words you don't pay tax on £2,000 of salary in addition to your personal allowance (currently £8,105). Finally, if you are self employed and are paid either a car allowance or mileage (or both), this is treated as normal business income in addition to whatever you charge for doing the job/s. Then you can either run the vehicle in your 'self employed' name, or run it personally and the business can pay you a mileage allowance for all business miles. Hope that helps. Andy
05 May, 2012
Hi Andy , if I finance lease a pick up aside from claiming vat on the deposit and monthly fee can I offset any of the costs against corporation tax similar to writing down allowances with a HP agreement ? The vehicle would be strictly business use only with personal mileage only to and from work.
Hi Adam The answer is yes you can claim the excluding VAT costs against Corporation Tax as you have correctly suggested. I would however check you BiK (Benefit in Kind) position carefully. As you mentioned Corporation Tax, I’m assuming you are trading as a limited company. If your use travelling to and from work is classed as commuting you may be liable to be taxed on £3,000 (the current benefit for commercials / vans). I would check this with your accountant. You could also do a Google search on ‘insignificant private use’ and this will give you more information. I hope that helps, please get in touch if you require more information. Andy
04 May, 2012
Hi Andy, can you please tell me the main differences between Finance Lease and Contract Hire? Cheers Ian
Hi Ian The main difference is that with Finance Lease you are responsible for disposal of the vehicle and the risk and rewards that go with it (any profit or loss). With Contract Hire this lies with the Finance Company, they dispose of the vehicle and take any loss or profit. However, as it’s their vehicle they will charge you ‘damage recharge’ if applicable. By this I mean they will charge you for any damage to the vehicle. We abide by the BVRLA’s (British Vehicle Rental and Leasing Association) Fair Wear and Tear Guide. This sets out what is acceptable and what is not. This, I believe, is very fair, however, be aware that some funders do not adhere to this and can impose punitive charges at the end of the contract. If these charges are imposed, you would really struggle to argue against them since there is no legislation to support your argument. With Finance Lease, you are responsible for disposal. Some people prefer this as they believe there is no damage recharge. However, look at it this way. Imagine you have a balloon payment of £7,000 (this is an amount of money offset to the end of the agreement for which the vehicle is expected to sell). If it’s in good condition, it may well sell for £7,000. However, if it’s damaged it may only fetch say £5,000 in which case you will have to pay the difference (in my view damage recharge by another name). Finally, one accounting difference: Finance Lease is accounted for on your balance sheet, whilst typically Contract Hire is accounted for off balance sheet. However, this is due to change in the next few years, when both will be on balance sheet. Andy
06 May, 2012
Can you arrange leasing to companies in a CVA
Hi Richard When you enter into a CVA you must surrender all your forms of credit (i.e. credit cards etc.) and you will not be allowed to obtain any further unsecured credit until you have finished your CVA. You are however, entitled to use pre-paid cards. The bottom line is, if you are in a CVA, it is highly likely your credit rating is not in good shape. By entering into an CVA, your company will not have a bad credit rating forever and when you have completed your IVA, your credit rating will begin to repair itself if you keep up your repayments. However, to do this you will need to approach what's known as sub-prime finance lenders, some of them do van leasing, they charge a higher interest rate to reflect the higher risk. It is then by using these lenders and paying all your repayments on time that you can rebuild your company's credit history and eventually build your history back up to a point that you will again be accepted by prime lenders (the ones that charge you the lowest, or a 'normal' rate of interest). Hope that helps Richard. Andy
05 May, 2012
Why do I get charged tax on my road tax? Why don't you let me buy my own road tax and save myself £42?
Hi Paul and thanks for the question. You're not the first to ask this question and it probably does seem a bit ridiculous. This situation only occurs on a finance lease agreement as with contract hire road fund licenec for the term is included in the rate you pay each month (all of which is vatable) But back to your situation There are reasons that it has to be done like this. Most if not all leasing companies have to have the vehicles they lease registered to them in order to obtain the large fleet discounts that are applied to their leasing rates . If a vehicle road fund licence (or road tax) is not renewed each year then the registered owner and not the rgistered driver is responsible and therefore liable for any fines that are issued by the DVLA if it is not renewed, so in this case the leasing company. Now if you take our largest Leasing company Network (Leaseplan) then they have in the region of 60,000 vehilces currently on lease to '000's of customers. The only way they can make sure that the vehicles they have are "legal" as far as road fund licence is concerned. Is to renew it themselves and recharge the customer. Unfortunately by doing this they then have to recharge the customer and under H.M.R.C rules this is then classed as a service and VAT has to apply. Obviously if you are VAT registered then you can claim this back through your quarterly returns. Probably not the answer you wanted but hopefully it explains things. Andy
11 May, 2012
Hi Andy, We need to lease a vehicle through our Ltd Company. We need a vehicle that is both useful for towing, carrying cargo and also economical as well as being able to be used for four passengers if necessary. With todays econonmic climate all things such as tax, fuel economy, VAT etc have to be taken into account. Any suggestions please?
Hi Tracy and thanks for the question. It would really depend on what you need to tow exactly, or more importantly how much weight you want to tow . Assuming it is below 2000kg or 2 tonne then it may well be worth considering the popular Vauxhall Vivaro Sportive crew van http://www.vanarama.co.uk/vauxhall-van-leasing/vivaro/2-0cdti-115ps-sportive-doublecab-2-9t-euro-5-7158.html It can comfortably carry six people including driver as well as leaving a fair amount of space for tools or cargo. It is well specified, has the new Euro 5 engine and is very economical. The official fuel economy figures for the Vivaro sportive are as follows: Ec Combined35.8 Ec Extra Urban39.8 Ec Urban30.7 Obviously bear in mind that if you are towing and carrying pasengers then this will affect the overall fuel economy. From a tax point of View even though it can carry six people it is still classed as a commercial vehicle. So 100% tax allowable and 100% VAT reclaim. I hope that helps, and please give us a call if you need any more help or advice. Andy
Andy has worked in the motor trade and more specifically been involved in supplying finance for vehicles, coming up to 20 years. He started his own business www.autorama.co.uk in 2004 selling used vehicles before expanding the company via its comercial vehcle leasing business in 2006. Back then the leasing business was pretty much just him, a laptop and a portakabin. Now just six years later Autorama through it's online brands vanarama.co.uk and pickuptrucksdirect.co.uk is recognised as the largest independant commercial vehicle leasing broker in the UK.
The last six years have seen continued growth and resulted in the company now employing 32 staff. Being able to offer some of the most competative rates in the country as well as industry leading levels of customer service have played a big part in our growth. However it is our ability and moreover our expert knowledge in this sector that has allowed us to best advise and therefor better serve our customers.
Every customers needs are different and there are so many options available that it's easy to see why people get confused by either inaccurate or simply poor advice. We are here to help and advise you so whatever your query, no matter how big or small your business or how complicated your situation seems. let us answer your van leasing questions.